EPAâs Water Quality Trading Policy (CRS Report for Congress)
| Release Date |
Jan. 29, 2003 |
| Report Number |
RS21403 |
| Report Type |
Report |
| Authors |
Claudia Copeland, Resources, Science, and Industry Division |
| Source Agency |
Congressional Research Service |
Summary:
On January 13, 2003, the Environmental Protection Agency announced a Water Quality Trading
Policy intended as an innovative approach to assist industry and municipalities in meeting Clean
Water Act obligations. Trading allows one source to meet regulatory requirements by buying credit
for pollutant reductions from another source that has lower pollution control costs. The policy
revises a 2002 proposal which reflected lessons learned from a similar trading policy issued by the
Clinton Administration in 1996. Water quality or effluent trading projects have occurred in the
United States since the early 1980s. The new policy is generally supported by industry groups, state
and local governments, and agriculture groups. Environmental groups are split on the concept.
Some argue that it is not lawful and are critical that the Bush Administration policy lacks a number
of details that they regard as necessary. Others support the concept, with adequate safeguards, as a
valuable tool in cleaning up waterways. Congress has conducted some oversight of water quality
trading and could continue doing so as the new policy is implemented. Legislation to codify a water
trading policy in the Clean Water Act could be considered, as well. This report provides background
on water quality trading and the EPA policy. It will not be updated.
