Rutgers New Jersey Agricultural Experiment Station [Water Resources Program]

Water Quality Trading Program

Case Studies

Ideas for water quality trading in New Jersey: Looking at successful examples from other states

Water quality trading is potentially an effective tool to achieve better water quality in New Jersey at lower cost than the traditional regulatory approach. In addition to reduced costs for point sources (factories, wastewater treatment plants, etc.) to comply with water quality standards, water quality trading can encourage reduction of rampant nonpoint source pollution such as agriculture and urban land use, which are not regulated by the Clean Water Act.

Water quality trading has happened in many other states around the country – There have been 40 trading projects across 17 states, in every region of the US. However, only a handful of these projects have achieved success. This summary will look at 4 successful projects, and review the pros and cons of each to determine what aspects would be applicable for a New Jersey trading project.


Acronym list

Pros and Cons of Four Successful Water Quality Trading Projects
     o North Carolina, Tar-Pamlico River Basin program – Nutrient (N&P) Trading
     o North Carolina, Neuse River Basin Program – Nitrogen Trading
     o Connecticut, Long Island Sound Nitrogen Trading Program
     o Michigan, Kalamazoo River Phosphorus Trading Demonstration Program
Conclusions: Implications for Water Quality Trading in New Jersey

Further details of each trading project mentioned above

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