Reduces cumulative pollutant loading, improves water quality, accommodates growth, and avoids environmental degradation. Addresses the broader environmental goals within a trading area, e.g., ecosystem protection, ecological restoration, improved wildlife habitat, and endangered species protection. Encourages dialogue among stakeholders and fosters concerted and holistic solutions for watersheds with multiple sources of water quality impairment. Threshold Conditions for Trading Experience to date has shown that there are numerous threshold criteria that need to be met in order for trading to be feasible. At a minimum, applicable technology-based requirements are complied with.
Pollutants included in trades are dependent on water quality problem.
Boundaries and markets for trading are well defined and no larger than a watershed. Cost differences in pollutant load reductions exist across sources. Transactions costs are minimized. Terms of trades are defined and agreed upon, including trading ratios and local impacts. Trading program is developed within an appropriate analytical and planning framework.