Main

Background

Pennsylvania’s Major Watersheds

Section 96.8 - Trading Regulation

Credit Generation Process

Offset Generation Process

Request for Certification

Calculations

Use of Credits and Offsets

Certified Projects

Contract/Trade Information

Verification Information

Registration Information

Nutrient Credit Clearinghouse

NutrientNet

Cost-effective Review Examples

Fact Sheet

Questions

What is Nutrient Trading?

• Nutrient trading is an approach to improve water quality by using market mechanisms to produce pollutant reductions at lower costs.
• It is a voluntary program that enables point or nonpoint sources that exceed their environmental obligations to generate credits that may be traded to others who are seeking nutrient credits.
• Market mechanisms can provide for an efficient and effective means of solving environmental challenges.
• The Department recognizes the many benefits of trading, including income to farmers and others who generate credits, and flexibility for the regulated community in meeting legal requirements, especially when done on a watershed basis.

General Trading Principles:

• A trade must involve comparable credits (for example, nitrogen may only be traded for nitrogen) that are expressed as mass per unit time (pounds per year);
• Credits generated by trading cannot be used to comply with existing technology-based effluent limits except as expressly authorized by federal regulations;
• Trading may only occur in a Department defined watershed;
• Trading may take place between any combinations of eligible point sources, non-point sources and third parties; and,
• Each trading entity must meet applicable eligibility criteria established under the Department’s nutrient trading regulations, 25 Pa. Code § 96.8, for this voluntary program.