Essentially trading is the transfer of pollution reduction credits from one source to another. In other words, if a source has reduced its effluent for a given parameter, say nitrogen, below what it is otherwise required to do, that additional reduction is available to sell in the form of credits. Done properly, trading can be a very effective component to a watershed approach. Being constantly mindful of the fact that much of the low hanging fruit in the area of nutrient reductions has already been picked, we need to consider innovative incentives which will be attractive to more sources. Trading can also encourage technological innovation as engineers seek out solutions wherever a market potential exists.
Trading can provide an option to offset growth.
Of the 345 wastewater treatment plants, approximately 100 are, or will be, operating Biological Nutrient Removal and many of them are getting better than expected results. Thus, many point sources will be able to generate credits for sale. We also know that the growth pressures for some wastewater treatment plants are such that they will need to expand in the future, and may require an approach like trading to offset growth. We also anticipate that trading will interest the nonpoint source community as they find that creating a wider buffer than, say, required by their management plan, or installing additional stormwater structures in urban areas will generate credits that they can sell to other sources that are experiencing growth pressures. The NT has met approximately once every 5-6 weeks since its first meeting in June, 1999.