(2) In developing the program, the department shall place a priority on trades that improve the water quality of the Willamette River and on the following pollutants or conditions:

(a) Nitrogenous and phosphorous compounds commonly referred to as nutrients;

(b) Sediment;

(c) Temperature;

(d) Biological oxygen demand; and

(e) Chemical oxygen demand.

(3) The department shall:

(a) Develop a procedure to assist persons entering into an agreement to offset or trade quantities of pollutants under this section in a manner that results in a net reduction of pollutants, assists in meeting water quality standards and implements total maximum daily load allocations;

(b) Provide oversight and administration of agreements entered into under this section;

(c) Minimize administrative and technical requirements in order to encourage and facilitate pollutant trading under this section; and

(d) Emphasize practical procedures for pollutant trading that can be implemented using reasonable estimations and engineering judgment.

(4)(a) The department may assess reasonable fees to a party engaging in pollutant reduction trading under this section to offset its administrative costs associated with the pollutant reduction trading program.

(b) The department shall make every effort to minimize fees to facilitate and encourage pollutant trading.

(c) Fees collected by the department under this section shall be deposited in the State Treasury to the credit of an account of the department and are continuously appropriated to the department.

(5) The department shall seek any approvals, waivers or authorizations from the United States Environmental Protection Agency necessary to implement the program.

(6) The department shall seek a minimum of $200,000 in federal funding to support the program.

(7) This section may not be construed to allow any activity expressly prohibited by federal law or regulation. [2001 c.758 §3; 2007 c.71 §150]