How Would Water Quality Pollution Trading Incorporate Nonpoint Sources?
There is widespread recognition that water pollution trading could occur between regulated, point sources (NPDES permit holders) because these sources are already regulated under the Clean Water Act. There is debate about whether nonpoint sources, and agriculture in particular, could be included in trading programs. Because many nonpoint sources currently are not regulated, nonpoint sources could only enter a trading program as an additional supply of credits for the point sources. Point sources would only be interested in purchasing credits from nonpoint sources if the costs are lower. For a description of issues related to nonpoint source pollution, please see Leeds et al. (OSU Extension Fact Sheet AEX-465-93). How would trades between point and nonpoint sources work? First, regulators would need to introduce flexibility into NPDES permits such that permit holders would be allowed to meet some of their required loading reductions through purchases of reductions accomplished by nonpoi
