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Water quality trade program to start in Alabama

Pollution credit system to start in Alabama

by MARY ORNDORFF�News Washington correspondent

WASHINGTON - A new water quality program will allow companies, cities and farmers in the same watershed to buy and sell pollution credits, a policy that will get an early start in central Alabama.

The trading system creates an economic incentive to reduce the nutrients and sediment dumped into a particular water system, federal officials said Monday in announcing the policy.

"It will use the power of the market to achieve the next generation of environmental progress in water quality," said Christie Whitman, administrator of the U.S. Environmental Protection Agency.

Under the voluntary program, one source could avoid installing an expensive pollution control device by paying another source in the same watershed to cut its dumping of the same substance. The EPA would allow the trade only if the pollution is reduced as a result. Dumpers of most kinds of toxins would not qualify.

"There is no doubt in my mind . . . (the trading program) will result in cleaner water at less cost and in less time," Whitman said.

The policy kicks off with $800,000 in federal funds for 11 pilot projects around the country, including in Montgomery, where regulators try to reduce the sediment that gets into the Coosa and Tallapoosa rivers from farming, natural runoff and development.

"It's like Christmas all over again for us," said Buddy Morgan, general manager of the Water Works and Sanitary Sewer Board in Montgomery. "This will make the states work together better than ever before."

The program was endorsed Monday by the U.S. Department of Agriculture, the American Farm Bureau Federation and the World Resources Institute. One of EPA's examples was that a farmer could get paid to limit nutrient runoff with a tilling technique, a cheaper solution than would be required to limit the discharge of that nutrient at an industrial plant nearby.

An environmental group critical of the program questioned Monday how the system would avoid "hot spots," or the concentration of pollution in an area where sources bought credits instead of limiting discharges.

"There are some equity issues, like people living closer to an upstream source that trades (pollution credits) won't benefit if there is a downstream trade," said Joan Mulhern, legislative counsel for Earthjustice.

Morgan, who also is vice president of the Association of Metropolitan Sewerage Agencies, said he believed the policy would save money for those who are responsible for safe drinking water.

"We don't see this as an avoidance of the laws," he said. "This is not a get-out-of-jail-free card."

Virginia Martin

Assistant state editor

The Birmingham News