Climate and Energy Resources for State, Local and Tribal Governments

Nitrogen Oxide (NOx) Budget Energy Efficiency / Renewable Energy Allowance Set Asides

EPA and the Eastern states designed an interstate emissions trading program – the Nitrogen Oxide (NOx) Budget Trading Program – to reduce ozone season emissions of electric generating and industrial combustion units. Under the NOx Budget Trading Program, 22 states and the District of Columbia allocate allowances to these units. In addition, states may choose to reserve (i.e., "set aside") allowances to provide incentives for new sources and/or for certain activities. For example, under an energy efficiency/renewable energy (EE/RE) set-aside, a state awards NOx allowances to eligible EE/RE projects. Awardees can either sell these allowances to help finance their projects or retire the allowances and thereby account for the emissions reductions associated with the project. EPA held Technical Forum calls on this topic in June 2006 and November 2004.

Presentations and Papers

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