A legal case involving a company and an employee went to court. The company wanted the case dismissed, but the court said it could continue. In 1999, the Florida Legislature passed a law to improve the quality of the state’s water. The law gave the Florida Department of Environmental Protection (DEP) the power to develop a method for assessing water quality and restoring impaired waters. Since then, DEP has been working to fix many of the state’s water problems. However, it’s expensive to fix all the issues using current technology.
To address this, policymakers have been looking at market-based tools to help solve environmental problems in a cost-effective way. One of these tools is pollutant trading, and the Florida Legislature included this in the law. DEP plans to start making rules for this in 2007.
This new trading program could cause legal issues for people involved in trading credits for water quality. For example, if the requirements for water quality are not met, both parties may be held responsible, even if it’s not their fault. The trading program will allow trades between different sources of pollutants, and DEP is planning to use default factors to make the trades fair. This could lead to legal challenges in the future. DEP is trying to create a system for trading water quality credits. They are being careful to respect privacy and property rights while still making the information accessible to the public. They initially considered a trial program, but have decided not to go ahead with it. They are learning from other programs and will use that knowledge to develop their own system. In order to protect the environment in Florida, regulators have to consider the whole river system when allowing companies to trade pollution credits. They have to make plans for each specific area to make sure trading doesn’t cause more pollution in some areas. The Environmental Protection Agency recommends including trading in permits that companies need to dump pollution. This way, the state can make sure the trades are fair and that companies follow the rules. If a company causes a pollution problem with trades, they will be held responsible. The Idaho Department of Environmental Quality (IDEQ) has created a framework for pollutant trading that addresses many issues. They recommend using credits in the same month they are earned to avoid delays and allow for monthly monitoring. They also suggest adjusting effluent limits during trades to keep control over discharges. They also include upper effluent limits in permits to prevent “hot spots.” This could serve as a model for other states, like Florida, to create a more flexible and efficient water quality regulation system. The Idaho Clean Water Cooperative (ICWC) is a nonprofit organization that helps support Idaho’s effluent trading program and keeps track of all the trades and credits. Florida can look to its own wetland mitigation rules for guidance in developing its water management policies. The rules for mitigation banks in Florida provide criteria to evaluate mitigation bank proposals and ensure environmental protection. The credit system for mitigation banks is similar to the water quality credit trading program. Both programs also require public availability of information about the available credits. When it comes to environmental trading, the person holding the permit is ultimately responsible for meeting the pollution limits, even if they bought credits from someone else. To protect themselves, buyers should have a contract with the credit provider and include extra safety measures in case things go wrong. This can help reduce pollution going into our water. Parties can also use sample contract language provided by their state’s environmental agencies to make the process easier and cheaper. In 1999, Florida committed to a program to trade pollution for surface water discharges. After 2 years of study and discussion, in 2006, the DEP recommended changes to the law to allow water quality credit trading. If the legislature passes these changes in 2007, Florida’s water quality credit trading program will be put into action. Water management districts and experts will then develop plans to establish markets for trading water quality credits throughout the state. The Florida Department of Environmental Protection (DEP) has been working on creating a program to allow trading of pollution credits in Florida. They have been careful to consider the impact on the environment and have sought input from stakeholders and experts. However, it’s important for water law practitioners to ensure that any trading agreements are backed up by private contracts to protect their clients’ interests. These contracts can add extra costs, which may reduce the benefits of the trading program. DEP is working on finalizing the rules for the program and is looking to other states’ programs for guidance.
Source: https://www.floridabar.org/the-florida-bar-journal/water-quality-credit-trading-a-practitioners-perspective/
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