EPA Proposes New Trading Programs for Sulfur Dioxide and Nitrogen Oxide Emissions Allowances; New Programs Would Replace CAIR

EPA is set to issue proposed regulations regulations in the Federal Register that would require Electrical Generating Units (EGUs) above 25 MW in 27 eastern states and Washington, D.C., to reduce emissions of NOx and SO2 and EGUs in an additional four states to limit emissions of only NOx. EPA proposes to allow for interstate trading of emissions allowances under restrictions designed to ensure that each state is able to meet National Ambient Air Quality Standards (NAAQS).

Earlier this month, the United States Environmental Protection Agency (EPA) proposed regulations to replace its Clean Air Interstate Rule (CAIR). EPA's proposed Transport Rule, which is expected to be published in the Federal Register in early August, would require 27 eastern states and Washington, D.C., to reduce emissions of NOx and SO2 and an additional four states to limit emissions of only NOx. The proposed emissions limits are intended to facilitate attainment and maintenance of National