ABSTRACT
This chapter illustrates how the evaluation of performance can inform regulatory design through study of a proposed set of trading rules for point source/nonpoint source trading. The trading designs evaluated here are based on target zone trading, an approach to trading developed for Clear Creek Watershed near Denver, Colorado. Although this variation complicates the analysis and makes Clear Creek a likely candidate for a seasonal Total maximum daily load (TMDL), for simplicity of analysis and methodological illustration, this study uses a single TMDL that is based on low-flow conditions. Although the data on safety incidents are collected and reported regularly, they have some limitations. The data are self-reported, which is likely to lead to underreporting. The Clean Water Act, enacted in 1972, requires point source dischargers to install and operate pollution controls to satisfy technology-based effluent limitations that restrict the quantity of pollutants in a wastewater discharge.
