July
12, 2002
The
Honorable Christine Todd Whitman
Administrator, U.S. Environmental Protection Agency
Ariel Rios Federal Building
1200 Pennsylvania Avenue, NW
Washington, DC 20004
Re:
Water Quality Trading Policy
Dear
Secretary Whitman,
The
Association of California Water Agencies (ACWA) is pleased to
submit comments on the proposed Water Quality Trading Policy to
maintain water quality in unimpaired waters, facilitate development
of Total Maximum Daily Loads (TMDL) and trading to meet TMDLs.
ACWA represents 440 public water agency members collectively responsible
for more than 90 percent of the water delivered in California
for residential, agricultural and industrial use.
ACWA
offers these comments with the intent of helping facilitate the
development of the trading concept. In general, ACWA supports
the concept of water quality trading programs that provide incentives
to reduce pollutant loading. Water agencies support the formulation
of the EPA's trading initiative as a welcome tool in assuring
water quality in both impaired and unimpaired waters, and in the
furtherance of helping local communities to meet their own TMDLs.
The
trading proposal appears to strike a good balance between the
needed flexibility for state and local innovation and the need
for clear accountability in Clean Water Act compliance and water
quality improvements. As specific programs are developed and administered
by the states at a local level on a watershed basis, the following
principles should be incorporated:
-
Any
program ultimately adopted should be voluntary.
-
Precedent
to the development of any trading scheme in any watershed, the
stakeholders should be permitted to engage in a rigorous scientific
review of the appropriateness and capacity of the reasonable
designated beneficial uses so as to prevent unrealistic expectations
for such trading.
-
The
program should require an overall net reduction in pollutant
discharges. Where load or waste load allocations are not fully
utilized, the remainder should be used to create credits.
-
Trading
should be limited to the same watershed to assure the program's
integrity.
-
The
program should provide sufficient economic incentives to encourage
participation.
-
A
clear and predictable accounting and reporting mechanism needs
to be established and followed.
-
The
program should provide for cross-pollutant trading.
-
The
plan should provide for a credit program that allows flexibility
for trading ancillary water quality benefits (such as wetlands
restoration, etc.), but which is justified based on the best
science currently available.
-
Trading
programs should encourage reductions in "legacy" or
other "orphan share" pollutant loading (e.g., abandoned
mine waste) that is not associated with a responsible point,
or nonpoint source.
Again,
ACWA supports the proposed U.S. EPA proposal and believes it does
a good job of identifying the framework for a successful program.
EPA should consider developing an incentive program to encourage
states to develop water quality trading programs in compliance
with EPA guidelines.
Thank
you for the opportunity to comment on the trading initiative.
ACWA stands ready to provide any additional input in the furtherance
of this worthwhile effort.
Sincerely,
STEPHEN K. HALL
Executive Director
cc. Jean-Marie Peltier, Counselor to the Administrator
The Honorable G. Tracy Mehan III, Assistant Administrator for
Water
The Honorable Benjamin Grumbles, Deputy Assistant Administrator
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