EPA proposes NO x emissions-trading program

The U.S. Environmental Protection Agency has proposed an emissions-trading program that will help reduce emissions 35% from the so-called "upwind" states that contribute to smog formation in eastern states. EPA said the "cap and trade" program allows industries great flexibility in choosing pollution controls because they can buy and sell market-based "credits" to reduce their nitrogen oxides (NO x ) emissions. EPA Administrator Carol Browner said the program will enable eastern states to meet

May 11, 1998

2 min read

EPA said the "cap and trade" program allows industries great flexibility in choosing pollution controls because they can buy and sell market-based "credits" to reduce their nitrogen oxides (NO_x) emissions.

EPA Administrator Carol Browner said the program will enable eastern states to meet EPA's new health standards for smog in most areas with no need for additional controls.

In November, EPA proposed that 22 states and Washington, D.C., reduce emissions of air pollution that blow across state boundaries. The proposal was based on the recommendation of 37 states, known as the Ozone Transport Assessment Group (OTAG), that identified power plants as the most significant source of NO_x emissions, a key component in the formation of smog.

The 37 states in OTAG, acting under Section 110 of the Clean Air Act, also identified the states that contribute to transboundary air pollution problems and the level of reductions necessary to meet the health standard.

The proposed emissions-trading program would allow each state to establish a cap on NO_x emissions and provides flexibility for power plants and other sources that reduce these emissions to a greater degree than required to sell credits to facilities that cannot reduce emissions as quickly or as cost-effectively.

EPA said a similar market-based program has proven successful in allowing power plants to trade credits to meet and exceed standards for reducing sulfur dioxide emissions to control acid rain.

The agency said that, when it takes final action to reduce NO_x emissions this fall, the trading strategy will bring most of the areas in the 22 states and Washington, D.C., into attainment with EPA's new standards for smog without additional controls.

It said that, besides decreasing smog, cutting NO_x emissions also will help reduce problems with acid rain, contaminated water bodies, airborne particles, regional haze, and global warming.

The 22 states are: Alabama, Connecticut, Delaware, Georgia, Illinois, Indiana, Kentucky, Massachusetts, Maryland, Michigan, Missouri, North Carolina, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee, Virginia, Wisconsin, and West Virginia.