Water Quality Trading in the Lower Delaware River Basin: A ...

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Shapiro, Sidney A. and Robert Glickman. 2000. Comment: Goals, Instruments, and Environmental Policy Choice. Duke Environmental Law and Policy Forum 10: 297. Solomon, Barry D. 2002. "The Origins, Practice, and Limits of Emissions Trading" Journal of Policy History - Volume 14, Number 3, pp. 293-320 Stavins, Robert. 2000. “What Can We Learn from the Grand Policy Experiments? Lessons from SO2 Allowance Trading.” Economics of the Environment, ed. Robert Stavins. New York: W.W. Norton. Stephenson, Kurt, Leonard Shabman, and L. Leon Geyer. Toward an Effective Watershed-Based Effluent Allowance Trading System: Identifying the Statutory and Regulatory Barriers to Implementation. The Environmental Lawyer 5(3): 1999. The United States Environmental Protection Agency, 1996. Office of Water. Draft Framework for Watershed-Based Trading, EPA 800 R 96 001. Washington, DC. United States Environmental Protection Agency, 2001, Office of Water. The National Costs to Develop TMDLs (Draft Report), EPA 841 D 01 004. Washington, D.C.: July 31, 2001. The United States Environmental Protection Agency, 2005a. Office of Water. Watershed Trading Policy. http://www.epa.gov/owow/watershed//trading/trading policy.html. Last visited March 28, 2005. The United States Environmental Protection Agency, 2005b. Office of Water. http://www.epa.gov/owow/tmdl/index.html. Last visited march 2005. Woodward, Richard T. and Ronald A. Kaiser, 2000. “Market Structures for U.S. Water Quality Trading, Draft Article for Submission to the Review of Agricultural Economics. Wyman, Katrina Miriam. 2002. “Why Regulators Turn to Tradable Permits; A Canadian Case Study.” 52 University of Toronto Law Journal 419, Fall 2002. 22
Chapter 2 Technical Aspects of Water Quality Trading Systems in the Lower Delaware Region Introduction D. Curley and W. Shieh Numerous factors influence the water quality of a water body, including the natural and anthropogenic inputs, and the physical and biological processes that occur within the water body. Managing and improving water quality involves being able to quantify the spatial and temporal changes in water quality within a watershed. This is particularly important in water quality trading programs where understanding how pollutants travel through a watershed is essential to evaluating trades. This chapter discusses the technical aspects of modeling and monitoring that are required to establish and manage water quality trading systems. Modeling Selection of Models for Developing TMDL’s and Trading Systems The modeling that trading systems require is similar to the models that the TMDL program uses to predict water quality and determine allocations. The general form of the modeling combines a watershed loading model with a waterway model. Watershed loading models predict the amount of pollutants entering the water body, while waterway models predict the fate of the pollutants once they are in the water course. The simplest watershed loading models use statistical or empirical relationships between land use and loading rates. Complex methods involve physical-based deterministic equations that describe a water balance and the fate and transport of a pollutant that moves through a watershed. Steady state waterway models use constant values of input to predict water quality within a water course. Hydrodynamic models vary the inputs with time to predict the variation of concentration with time. No model or combination of models is the best for all situations (EPA 1997). Factors that can influence the selection of a model include: the type of waterway, flow rate, environmental process of concern, availability of data, geographic extent of the water quality impairment, geographic extent of the watershed that feeds the impaired segment, temporal aspects of the impairment, and cost and availability of expertise. Table 2-1 and Table 2-2 summarize some of the existing models and methods that are available for the type of watershed analysis. Several of these models are available for download at www.epa.gov/ceam/publ/. Water quality modeling for TMDL’s and WQT can be both complex and expensive. For example, the estuary model for the Tar-Pamlico Nutrient Trading Program cost $400,000 to develop (Fisher-Vanden et al 2004). EPA estimates that the cost of development of 95 to 98% of all TMDLs will be between $6,000 and $154,000 (EPA 2001). These costs will vary according to the complexity of the watershed and the 23
Page 1 and 2: Water Quality Trading in the Lower
Page 3 and 4: wide pollutant reductions to meet T
Page 5 and 6: Chapter 4. Administration and Manag
Page 7 and 8: Historical Development of Water Qua
Page 9 and 10: mechanisms to achieve the cap. The
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• Scale--Is the geographic area c
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There are many other organizations
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opportunities for trading. Existing
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Chapter 5 Conclusions and Recommend
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• The NPDES permit renewal proces
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• It is recommended that normativ
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References PRedICT User Guide, 2003
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