BOARD00234

• Board Meeting Date: 7/23/2002
• Description: CWCB Director's Report
• Board Meetings - Doc Type: Memo

implementing projects under EP A's January 1996 Effluent Trading Policy and May 1996 draft
Framework for Watershed-Based Trading. .

Water quality trading is a voluntary, incentive-based approach to more efficiently protect and restore the
nation's waters. The proposed policy addresses trading to maintain water quality in unimpaired waters,
trading in impaired waters before development of a Total Maximum Daily Load (TMDL) and trading to
meet TMDLs. While the focus is on nutrients and sediment, the policy also discusses the potential for
trading other pollutants under certain circumstances.

To be consistent with the Clean Water Act, the policy states: "all trading must occur within a watershed
for which a trading program has been established or a defined area for which a TMDL has been
approved." A typical trading program would have pollution limits set for each waterway in a watershed,
as well as quotas for each company which discharges pollutants into a waterway. Any state, tribe, or
company that does not use up all available credits und~r its quota, would be able to sell the remaining
credits to other polluters.

C011l1l1ents on the policy were due by July 1. For copies visit:
www.epa.gov/owow/watershed/trading.htm.

National Water Policy: On MaJl22, the U.S. House of Representatives' Resources Committee's Water
and Power Subco11l1l1ittee held a hearing on the 21 st Century Water Policy C011l1l1ission Establishment
Act (H.R. 3561).

John Keys, Reclamation C011l1l1issioner, testified thaHhe Department of Interior". ..supports efforts... to
plan for our nation's future water needs."

Tom Donnelly testified for the National Water Resources Association, saying, "My first reaction...was .
please, not another water policy c011l1l1ission....A better use of the money...would be to conduct a
comprehensive national water resources needs assessment." He also highlighted the need to review,
prioritize and complete authorized federal water projects.

A representative from the WSWC testified that virtually every western state needs additional water
supplies to meet growing consumptive use demands,iand recognizes a need for rehabilitation of existing
water infrastructure, while at the same time protectirig instream water uses and values. He mentioned an
array of state initiatives dealing with these challenges, stating that in a real sense, these state strategies
collectively represent a "national water strategy," noting however that a vital federal role remains.

For more information, a hearing agenda and copies Of testimony visit
http://resourcesco11l1l1ittee.house.gov/ 1 07 congfwater/2002mav22/agenda.htm

ESA Bill: On July 10 the U.S. House of Representatives Resources C011l1l1ittee passed HR 4840 by a
vote of22 to 18. The bill amends the Endangered Species Act to "ensure the use of sound science in the
implementation of that Act." The bill also:

. Requires the use of the best scientific and cd11l1l1ercial data available as a basis of determinations
on a petition to add or remove a species from the endangered species list

. Directs the Secretary of the Interior to give greater weight to any scientific or c011l1l1ercial study
or other information that is empirical or has'been field-tested or peer-reviewed.

. Requires that a petition regarding a species contain clear and convincing evidence of the current
and historic ranges ofthe species conceme4, ofthe most recent population estimates and trends
for the species, that any alleged change in the population is beyond normal fluctuations, and of .
the reason that the petitioned action is warr;mted.