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

more complex trading programs, governmental organizations may be preferable. In some
situations, notably the Grassland Area Farmers (CA), Long Island Sound (CT), and the
Passiac Valley Sewerage programs, the need for an administrative organization has been
eliminated as the trades are conducted directly with the government agencies.
Since the main stem of the Delaware River could potentially involve an interstate
trading situation, either an agency with interstate authority or a process involving all the
needed agencies (and stakeholders) would be necessary. There is no major interstate
water quality trading program that covers an area comparable in size and nature to the
LDR Basin (eg. a large, tidal, multi-state system with an existing complex governance
structure). The Long Island Sound Program covers a area that is similar in size to the
LDR but its trading program currently includes only dischargers from the State of
Connecticut (Johnson 2005). The organizational structure will be different for a situation
where all trades would occur between sources in one state (intrastate trades) versus the
LDR situation where the potential trading partners are located in different states
(interstate trades). Since there is a potential for interstate trades in the LDR the
administrative organization should have broad representation from Delaware,
Pennsylvania, and New Jersey.
In either interstate or intrastate programs it is essential to involve all pertinent
permitting agencies and interested stakeholders in some way. For example, to the extent
that permits under the NPDES are involved in trading programs (this is usually the case),
the permitting authority has usually been involved in an active way. In the LDR, all three
states (Delaware, Pennsylvania, and New Jersey) have been delegated the authority to
administer the NPDES permit, compliance, and enforcement program. The EPA
maintains a role of “overseeing” the administration of the state-administered NPDES
programs in order to ensure consistency with national standards and policies. The DRBC
also has authorities to be considered in any trading scenario. Evaluations of the strengths
of organization relative to trading are provided in the last section of this chapter.
• In addition to designating or designing an administrative organization, for a trading
program to be successful, it is essential to build trust with key interested
stakeholders. These stakeholders typically included groups such as the regulated
community, elected and career government officials at all levels, environmental
groups (mostly at the local level but sometimes at the national level), and civic
organizations. The timing of the stakeholder involvement is also important. The
process of establishing a trading program should be as transparent as possible,
involving potential stakeholders at the earliest possible time. Since there are many
complex issues to address before it is determined if trading is appropriate for a
watershed, and since many stakeholders may be interested but may also have time
constraints, it is important for leaders to find effective ways to communicate.
Nationwide, the traditional methods of mailings, internet sites, and newspaper
articles have all used by various leaders involved in trading. However, meeting
early and often with potentially-impacted parties is viewed to be especially
important in establishing the trust needed to be successful in the long run.
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