Back to Katoomba SiteBack to Katoomba Site

The Topic:

Description: This topic is all about a new funding mechanism designed to help improve water quality throughout the Chesapeake Bay watershed, which is provisionally called the Chesapeake Clean Water Fund (CWF Fund). The CWF will leverage private dollars to invest in high-impact nutrient reduction projects across the Chesapeake Bay by capitalizing on increased public concern about environmental issues and interest in corporate environmental stewardship by the private sector.

 

The Question:

"What are the key steps that must be taken together to enable the CWF and other voluntary, market-based schemes to thrive in the Chesapeake Bay watershed?"

The Discussion:

[+ ADD NEW COMMENT THREAD]

Key elements Jack Tarburton - June 03, 2008

[Reply] Assuming the buyers are for the most part, municipalities or point source dischargers, and the sellers are non-point who are implementing practices reducing run-off.
1. Ratchet down allowable pollution. Creates demand for credits.
2. Determining non-point source "credits."
3. Creating the transfer mechanism or "bank."
4. Non-point "credits" on a per farm basis will be small, so will have to be aggregated, a separate process.
Will be a push-back from the municipalities claiming "unfunded mandate," e.g., current situation in PA.

Re: Key elements

Kurt Stephenson - June 18, 2008

[Reply]Market-based trading is a system of allocating discharge rights, not a system of taxation. If the Bay states want to tax urban residents to pay for NPS reductions, they should say so and discuss the multitude of ways to generate revenue. Contriving a trading program to generate revenue through the regulatory program is neither administratively effective or honest way to raise funding.