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Water Quality Trading Assessment Handbook
1. Introduction
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Water Quality Trading Assessment Handbook - Chapter 1: Introduction (PDF) (5 pp, 58 KB)
This handbook provides a means for assessing the potential to effectively use WQT to address the water quality problem(s) in your watershed. Specifically, the handbook assesses the likely viability of watershed-scale trading conducted in the context of a Total Maximum Daily Load (TMDL) or equivalent framework. The analytical approach assumes that a TMDL has been completed and will contribute valuable data on pollutant loadings, the overall pollutant ‘cap’ or bounding limit on trading activity, and watershed conditions.
To conduct a WQT assessment, key watershed stakeholders and clean water authorities will need to be engaged. You may also want to consult with specialists in areas such as finance or agricultural best management practices. The handbook helps you identify what you need to know, with whom you might consult, and where to find the information needed to determine whether WQT is right for your watershed. Success in watershed scale trading markets will be influenced by several factors, including the:
- pollutant to be reduced and the physical characteristics of the watershed;
- cost of pollutant control for individual dischargers and sources;
- market mechanisms used to facilitate trading; and
- ability and willingness of stakeholders to participate in trading.
When the assessment is complete, you will be well positioned to determine whether WQT is viable in your watershed. If watershed circumstances are favorable for WQT, the assessment will provide you with an understanding of the pollutant reductions that may (and may not) be traded, the potential trading parties, possible financial benefits, and the range of interested stakeholders. With this information, you will be ready to approach other relevant parties and engage state and local clean water authorities to commence WQT program design and implementation.