&EPA
              Unitedj'pates
              Environmental Protection
              Agency
                EPA420-K-97-001
                August 1997
               . http://www.epa.gov
              Office of Air and Radiation
Market Incentives
Resource Center

Online Directory of
Air Quality Economic
Incentive Programs
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        tiovernment agencies nationwide increasingly
         use economic incentives to promote reduc-
         tions in air pollution from mobile, station-
         ary, and area sources. Market-based
programs are designed to lower compliance costs,
reward technological innovation, and provide some
flexibility for the regulated community. The expand-
ing array of initiatives at the local, state, and regional
level demonstrates the widespread interest in such air
quality management approaches, which can offer an
alternative to programs based on regulation or a
means of supplementing more traditional programs.

EPA has collected information about the many pro-
gram applications of economic incentives into a central
repository that can be easily accessed by government,
industry, and the general public through the Market
Incentives Resource Center (MIRC). The goal of the
center is to facilitate information exchange on market
                          incentive programs
                          throughout the country.

                          The MIRC Directory of
                          Air Quality Economic
                          Incentive Programs is
                          part of an ongoing effort
                          undertaken by EPA's
                          Office of Mobile Sources
                          (QMS)  and  Office of Air
                          Quality Planning and
                          Standards (OAQPS) to
                          make program-specific
                          information widely avail-
                            www.epa.gov/omswww/market.htm

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     able. This information about existing and developing
     programs will be especially useful at the local level
     when assessing options for an appropriate air quality
     management approach.
The                of
on
            [he use of market incentives encourages
             private firms and individuals to conserve
             environmental resources while acting in
             their own economic self-interest. For exam-
     ple, typical programs rely on marketable credits or
     allowances, equipment buy-backs, or fees to induce
     environmentally beneficial action.

     Policymakers have found that for certain market sec-
     tors such programs present a useful alternative to the
     traditional command-and-control approach. Also,
     market-based programs often can be attractive in
     terms of lower administration costs and financial
     burdens on businesses.

     Given the challenges of enforcing
     a regulatory scheme,
     incentive programs offer
     particular advantages
     in a marketplace that is
     increasingly characterized
     by diversity in industrial
     processes and the mix of
     products. The use of market
     incentives for air quality
     management is encouraged
     in the Clean Air Act
     Amendments of 1990 and is
Market Incentives Resource Center

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the subject of two recent regulatory initiatives: the
Economic Incentives Program Rules and Guidance
(promulgated in 1994) and the Open Market Trading
Guidance (proposed in 1995).

Through the MIRC, EPA is disseminating current'
information about, air quality management programs
that are based on economic incentives to facilitate
more widespread application of this approach. The
MIRC Directory is intended to serve both as a tool
for local officials designing programs that harness
market forces to benefit the environment and as
a means by which members of the regulated com-
munity  can learn about program options in their
particular area.
       Ihe MIRC Directory is a catalog of air quality
        program summaries that resides on the World
        Wide Web (www.epa.gov/omswww/
        markethtm). The directory includes informa-
tion on mobile, stationary, and area source programs
that can be accessed and viewed online using web
browser software. (The directory is designed so that it
can be accessed with the wide variety of browsers cur-
rently in use. The most recent version of a particular
browser, however, may offer a measure of graphic
enhancement.)

Examples of mobile source initiatives are programs
based on transportation pricing, emissions credit
trading, and fleet vehicle buy-back or scrappage.
Stationary and area source programs emphasize
such inducements as the banking and trading of
emissions allowances, emissions reduction credits,
or discrete emissions reductions.
                            www.epa.gov/omswww/market.htm

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                                                     'i-
     One of EPA's objectives in developing the MIRO""
     Directory was" to capture information on the full
     spectrum of air quality economic incentive programs.
     As a result, the directory includes summaries of pro-
     grams at various stages of development and imple-
     mentation. Program summaries present information
     as provided by program authorities, however, and
     the inclusion of a summary in the directory does not
     imply endorsement by EPA.

     The directory organizes program summaries into
     general categories. To access information about a
     particular type of program from the directory's main
     screen, the user can select from a menu of program
     categories. Selecting the target sources category, for
     instance, accesses a list of source categories (mobile,
     stationary, and area). The user can then click on the
     triangular pointer to the left of a category entry to
     access an alphabetical listing by state of all programs
     in the directory that focus on that particular source.
     Clicking on an entry in the program list opens the
     summary.
                  By Program Title
                  By Program Location
                  By Authority/Sponsor
                  By Program Type
                  By Incentive Type
                  By Target Sources
                  By Target Pollutants
                  By Program Purpose
           For more information on market-based incentive programs, visit these other sites:

                •  The International Council for Local Environmental Incentives
      >*•• The MIRC Directory's main screen presents a menu of program
        listings by general categories.
Market Incentives Resource Center

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Each program summary identifies the title, location,
authority or sponsoring agency, and contact for the.
initiatives Users can send a message to the program
contact by clicking on the e-mail address listed in the
summary's header. Summaries also provide informa-
tion describing the type of program and incentive, the
targeted sources and pollutants, the program's pur-
pose, and'its notable features. The summary's header
also indicates when the program information was last
updated.
  Program Location:
  Auxiliary or Sponsor:
  Contact Name & Phone:
  Contact E-Mail:
  Authority/Sponsor Type:
  Notes:
Illinois
Illinois Environmental Protection Agency
Gale Newton, (217) 785-5735
contact@epa.state.il.us
State Government
  Final rules have been written; will soon be submitted to Illinois Pollution Control Board
  for review and promulgation.
  Program Type(s):
        Banking and Trading
        • Cap-and-Trade/Budget
        On-Highway Technology
 p^ The header of each IVilRC Directory program summary lists key
   information.

The MIRC Directory also includes a full-text search
engine, which allows the user to access information
about economic incentive programs based on key-
words or phrases. To access the search screen, the
user would click on the magnifying glass icon that
appears throughout the directory after a selection has
been made from the main screen. The search screen
includes features that allow the user to refine the
search and organize the results according to prefer-
                               www.epa.gov/otnswww/market.htm

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     ence. The user can further specify the search results
     "by using basic structured query language (e.g., use
     more than one keyword or phrase connected by AND
     or OR).
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        The MIRC Directory includes a search engine for accessing program
        summaries by a specific topic.
              ecause developments in air quality economic
              incentive programs are ongoing, MIRC staff
              will update the directory regularly. New
              information from users is welcome. A blank
     program description template can be downloaded from
     the Updating the Directory section of the site's main
     screen, filled out, and sent directly to the MIRC using
     the site's e-mail feature (oms-mkt-inc@epamail.epa.gov)
     for inclusion in the directory. Also, users of the directory
     can e-mail feedback to MIRC staff on the utility of the
     directory.
Market Incentives Resource Center

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              |s-

        nother feature of the MIRC Directory web
        site is that it includes links from its main
        screen to other web sites related to market-
        abased incentive programs. The MIRC staff
will add additional links over time. Users of the
directory can e-mail MIRC staff with suggestions
about useful links to include.

       | he MIRC Directory is posted as a link from
        the Office of Mobile Sources' homepage
        at www.epa.gov/omswww/market.htm.
        For more information about the Market
Incentives Resource Center and the MIRC
Directory, call 313-668-4333 or. send an e-mail to
oms-mkt-inc@epamail.epa.gov
                            www.epa.gov/omswww/market.htm

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&EPA
   United States
   Environmental Protection Agency
   Office of Air and Radiation
   Ann Arbor, Ml 48105

   Official Business
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