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There are various methods of allocating allowances to renewable energy sources under cap and trade programs, such as renewable energy set asides and output-based approaches. Background materials and presentations from the January 12, 2006 Webcast below, provide information on why it is important to include wind and other renewables in cap and trade programs and how best to incorporate them. Some of the following documents are available as Adobe Acrobat PDFs. Download Adobe Reader.
Implications of Carbon Regulation for Green Power Markets (PDF 983 KB) 
Bird, L.; Holt, E.; Carroll, G. National Renewable Energy Laboratory, April 2007.
January 12, 2006 Webcast: Incorporating Renewable Energy under the Clean Air Interstate Rule (CAIR)
Co-Sponsors
American Wind Energy Association (AWEA)
U.S. DOE/NREL Wind Powering America
STAPPA/ALAPCO
Allocating Allowances to Renewable Energy: Overview and Alternatives (PDF 491 KB)
Joel Bluestein, Energy and Environmental Analysis, Inc.
Massachusetts' Energy Efficiency/Renewable Energy Set-Aside Program (PDF 114 KB)
Sharon Weber, Massachusetts Department of Environmental Protection
Renewable Energy and the Clean Air Interstate Rule (PDF 104 KB)
Joe Bryson, U.S. Environmental Protection Agency, Climate Protection Partnerships Division
Wind Developer's Perspective on Incorporating Wind in Cap and Trade Programs (PDF 1.6 MB)
Kevin Rackstraw, Clipper Windpower, Inc.
State Energy Office Perspective: What is the role for State Energy Offices in Integrating Renewables and Air Quality Goals? (PDF 160 KB)
Sara Ward, Ohio Energy Office
Contact Information (PDF 87 KB)
More Information
- Bluestein, J., Salerno, E., Bird, L., Vimmerstedt, L. (July 2006). "Incorporating Wind Generation in Cap and Trade Programs (PDF 1 MB)."
- Under the current NOx Budget Trading Program SIP Call, seven states have incorporated a renewable energy allowance set-aside. An overview of the seven programs was produced by the EPA is available (PDF 104 KB).
- The EPA provides a variety of guidance documents on incorporating renewables in emission control programs.
- STAPPA/ALAPCO developed language for Alternative NOx Allowance Allocation under the Clean Air Interstate Rule, which includes allocation methods for renewable energy (PDF 332 KB).
- Environmental Resource Trust (Resource Systems Group) completed a dispatch analysis to determine real emissions displacement rates in the PJM and PJM West Areas. (PDF 308 KB)
Background on the Clean Air Interstate Rule
Issued by the U.S. EPA on March 10, 2005, the Clean Air Interstate Rule (CAIR) calls for significant reductions in emissions of sulfur dioxide (SO2) and nitrogen oxides (NOx) in 28 eastern states and the District of Columbia. States must achieve the required emission reductions using one of two compliance options: 1) meet the state's emission budget by requiring power plants to participate in an EPA-administered interstate cap and trade system, or 2) meet an individual state emissions budget through measures of the state's choosing. States must submit State Implementation Plans (SIPs) for CAIR by the end of 2006. For additional information, please see the U.S. Environmental Protection Agency's CAIR Web site.
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