EPA Pushing Water Quality Trading to Address Nutrients

Environmental Protection Agency, Federal Agency/Executive Branch, Federal Regulation, Opinions, Policy

February 11, 2019

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(Agri-Pulse) The Environmental Protection Agency is encouraging states to develop water quality trading programs to tackle nutrient pollution, which has become an increasingly visible issue in farm country.

In a memorandum to EPA regional administrators, Assistant Administrator for Water David Ross said the agency wants to move toward more market-based solutions to address excess nitrogen and phosphorus in the nation’s waters. The memo follows up on a December letter to states from Ross and USDA Undersecretary for Farm Production and Conservation Bill Northey seeking input on water quality solutions, and a Memorandum of Understanding released last week between EPA and the Water Research Foundation on affordable technologies to recycle nutrients from livestock manure. (More information from EPA here.)

In the letter to states, Ross and Northey said “nutrient pollution continues to be widespread, particularly in the Mississippi River Basin.”

In the past, Ross’ memo noted EPA has urged states to develop numeric water quality criteria and Total Maximum Daily Loads (TMDLs) for receiving waters. Those tools are still available, he said, but “EPA believes that market-based programs, including water quality trading, as well as incentive- and community-based programs can be used more effectively than they have to date to achieve water quality improvements.”

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One example: The memo says “demanding too much precision in measuring or predicting pollutant reductions from certain types of discharges, e.g., point source stormwater and nonpoint source runoff, can be an impediment to market-based programs.”

Being forced to verify water quality improvements with absolute precision could kill such programs, he said. In the past, “the agency would require precision — almost molecule for molecule — in offsets.” READ MORE

Water Quality Trading Policy to Promote Market-Based Mechanisms for Improving Water Quality (PDF)(Environmental Protection Agency 5 pp, 2 MB)

Next Steps in EPA’s Nutrient Engagement (PDF)( Environmental Protection Agency 1 pg, 190 K)

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