INCORPORATING TRADING OPTIONS INTO WATERSHED IMPROVEMENT PLANS: THE LAKE LEWISVILLE PILOT PROJECT

In areas predicted to experience rapid population growth watershed management is seriously challenged to accommodate economic expansion while maintaining water quality and ecosystem integrity. Denton County is one of the fastest growing segments in the Dallas Metropolitan Statistical Area and is a prime candidate for innovation that will help the community balance water quality protection and economic development. Although the Lake is not currently impaired, future growth could threaten designated uses, and in the worst case, result in a 303(d) listing and growth moratoria, as has occurred elsewhere in the country. The cooperative efforts of academicians and consultants were brought together on this project to create incentives for taking early action to help maintain and improve water quality by establishing a market for pollutant reduction credits. This plan provides opportunities to implement nutrient control measures around Lake Lewisville sooner, rather than later, and at less cost than under a more traditional approach. The credit market is proposed to help more equitably distribute nutrient control responsibilities among point and nonpoint sources by capturing favorable economics under the trading option.