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NOx Trading Programs

All NOx trading programs have the same goal: reduce the transport of ground-level ozone across large distances.

However, the programs have developed through different mechanisms, which has led to differences in the number of states involved, the timing of the compliance period each year, and the expected reductions. For more information on the NOx trading programs, visit:

This program was implemented from 1999 through 2002, and has since been replaced by the NOx Budget Trading Program under “the NOx SIP Call.”

In 2003, EPA began to administer the NOx Budget Trading Program under the “NOx SIP Call.” This market-based cap and trade program is still being implemented today.

The following table summarizes the key differences between the NOx trading programs:

 

Ozone Transport Commission (OTC) NOx Budget Program

NOx State Implementation Plan (SIP) Call

States Covered

CT, DC, DE, MA, MD, ME, NH, NJ, NY, PA, RI, VT

Phase 1 : AL, CT, DC, DE, IL, IN, KY, MA, MD, MI, NC, NJ, NY, OH, PA, RI, SC, TN, VA, WV; Phase 2 : GA, MO

Compliance Period

May 1 - September 30 of each year

May 1 - September 30 of each year
(in 2004 the compliance period began May 31)

Initial Compliance Year

1999

Phase 1: 2003/2004; Phase 2: 2007

Emissions Cap

219,000 tons in 1999;
143,000 tons in 2003

 

Baseline Year

1990

1995

Baseline Emissions

490,000 tons

 

Program Owner

OTC; Allowances set by OTC, Program administered by EPA

States and EPA; States have the option of participating in the trading program and establishing unit allocations, Program administered by EPA

 


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