Under the Nitrogen Oxide (NOx) Budget Trading Program in the Northeastern U.S., total ozone season NOx emissions from power plants and other large combustion sources were 30 percent below 2002 levels in eight northeastern states and the District of Columbia.

NOx Budget Trading Program cuts, when combined with other NOx control programs have reduced ozone season NOx emissions from sources in these states 70 percent below 1990 levels.

Nitrogen oxide is a key ingredient in creating ground level ozone pollution, along with volatile organic compounds.

These conclusions were in EPA’s first annual NOx Budget Trading Program 2003 Progress and Compliance Report released this week. The 2003 report assesses the NOx Budget Trading Program, a market-based cap and trade program created to reduce nitrogen oxide (NOx) emissions from power plants and other large combustion sources in the eastern United States.

These emissions reductions occurred despite power generation increases by the affected sources in 2003. Reductions also have occurred for both average emissions and short-term peak NOx emissions that are a concern on hot, high electricity demand days conducive to ozone formation. More than 99 percent of the affected units were in full compliance in 2003. Units that were out of compliance received penalties requiring deeper emissions cuts in the future.

9/3/2004