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Lessons Learned - The NOx Budget Trading Program

Cap and Trade

Exerpt taken from The NOx Budget Trading Program: A Collaborative, Innovative Approach to Solving a Regional Air Pollution Problem (PDF) (13 pp. 1.4 M, About PDF) The Electricity Journal, Vol 20/9 pp. 65-76, Nov. 2007.

Following the last four years of EPA and state experience implementing the NOx Budget Trading Program, important lessons have emerged.

The NOx Budget Trading Program showed that regional cap-and-trade programs are adaptable to more than one pollutant, time period, and geographic scale, and can achieve compliance results similar to the Acid Rain Program. The OTC NOx budget program was also an important example of cooperation between states, regional planning organizations, and EPA. The NBP further demonstrates how EPA and states can work together to identify and implement solutions to address pollutant transport across state boundaries that impacts public health and the environment. The program demonstrates that industries in addition to the power sector can effectively participate and that keeping rules simple and clear delivers value. This market-based approach has led to highly cost effective improvements in air quality in the eastern United States, with dramatic improvements in attainment of the ozone NAAQS.

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