Category:  Market-Based Instruments
Policy Type:  Regulatory Environmental Markets
Sector:  Wastewater, Agriculture
Region:  North America
Country:  United States
Description: Pennsylvania (United States) nutrient credit trading program provides a cost-effective means for point sources, particularly wastewater treatment plants, to purchase credits to meet their nitrogen and phosphorus discharge limits in their discharge permits for the compliance year. The trading is conducted through bilateral agreements between buyers and sellers and is facilitated by Pennsylvania Infrastructure Investment Authority (PENNVEST) where transactions occur through periodic credit auctions. Sellers may be other wastewater utilities or nonpoint sources, such as agricultural producers.
Outcome:  Pennsylvania's Nutrient Credit Trading Program provides a cost-effective option for wastewater treatment plants to meet their nutrient permit limits as well as allowing new and expanding wastewater sources options for offsetting new nutrient loads.
Reference: 
PA: Nutrient Trading Program