Illinois is one of a number of states under federal mandate to reduce overall nitrogen oxide (NOx) emissions. Illinois had adopted NOx emissions trading programs, first the NOx SIP Call program, then recently, the Clean Air Interstate Rule (CAIR) program. The purpose of these programs is to reduce NOx emissions using a market-based cap and trade program.
CAIR NOx Trading Program
This program applies to emissions of NOx from Electrical Generating Units (EGUs) over 25 MWe during the ozone season and annually beginning in 2009. This program will replace the EGU portion of the NOx SIP Call program.
NOx SIP Call Trading Program
This program applies to emissions of NOx from EGUs and large industrial boilers and turbines whose primary purpose is to generate process steam rather than electricity (non-EGUs) during the ozone season beginning in 2004.
The NOx SIP call trading program will be replaced with CAIR January 1, 2009 (see above). While CAIR addresses EGUs only, the NOx SIP call will also end for non-EGUs at the same time.
- 2007 New Source Set Aside Allocation - The Illinois NOx budget trading program defines a "new" budget EGU as one that commenced commercial operation on or after January 1, 1995. A "new" budget non-EGU is one that commenced commercial operation on or after January 1, 2000. 3% of the total EGU budget and 3% of the total non-EGU budget were set aside for new budgets in 2007.
- 2007 and 2008 Non-EGU NOx Allowances - The Illinois EPA has distributed NOx allowances to non-EGUs for 2007 and 2008 according to the table found in Section 217, Appendix E.
- 2007 and 2008 EGU NOx Allowances - The Illinois EPA has distributed NOx allowances to EGUs for 2007 and 2008. This includes both those EGUs listed in Appendix F of Section 217 and newer units.
- Additional Early Reduction Credits Sold - The Illinois EPA offered additional Early Reduction Credits (ERCs) for sale to those EGUs that made qualifying early reductions of NOx in 2003. Previous ERCs were already distributed for reductions made by EGUs in 2001 and 2002.
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