Text of the transmittal letter for the 1999 Pollutant Trading Pilot Project Summary Report

The Honorable Governor Tommy G. Thompson
State of Wisconsin

Acting Secretary George F. Lightbourn
Department of Administration

Mr. Robert Uphoff, Chair
Land and Water Conservation Board

Dear Gentlemen:

Enclosed is the second annual report of the progress and status of the pilot projects being conducted under the "trading of water pollution credits" statute. As required by s. 283.84(5), Stats, (Act 27, Laws of 1997), the Department is to annually submit this report to the Governor, the Secretary of Administration and the Land and Water Conservation Board. The report details the progress that was made in achieving water quality goals and coordinating state and local efforts to improve water quality as it relates to the trading of pollution credits.

Last year's report outlined the selection of three pilot projects, the early efforts to identify a framework for trading, and the activities undertaken to inform and educate the various interested parties. This work continues. However, each of the pilots has made substantial progress in one or more areas, answering some of the questions related to the technical, economic, legal and administrative issues for trading in their basins. Their progress is outlined in this second annual report.

This legislation has provided the Department with the opportunity to study and potentially implement trading in select watersheds in the state. Thank you for your interest and continued financial support of this innovative tool for achieving cost-effective water pollution control. Your support enables us to continue our evaluation and development of a watershed based trading program in the future.

Sincerely,

George E. Meyer
Secretary