NOX Budget Trading Program
2005 Program Compliance and
Environmental Results
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United States Environmental Protection Agency
Office of Air and Radiation
Office of Atmospheric Programs
Clean Air Markets Division (6204J)
1200 Pennsylvania Ave., NW
Washington, DC 20460
www.epa.gov/airmarkets
Office of Air Quality Planning and Standards
Air Quality Assessment Division
www.epa.gov/airtrends
EPA430-R-06-013
September 2006
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Contents
Ozone Formation and Health and Ecological Effects 5
Overview: Major Control Programs for NOX and VOCs 6
Overview: NOX Budget Trading Program, 2005 9
Ozone Season NOX Reductions under the NOX Budget Trading Program 11
Ozone Season Generation and Emission Reductions by Fuel Type 13
State-by-State Reductions 13
Daily Emission Trends 16
Ozone Monitoring Networks 17
General Trends: Changes in Eastern Ozone Concentrations since 1997 18
Ozone Changes after Adjusting for Meteorology 18
Ozone Changes: Focus on the NOX Budget Trading Program 20
Ozone Impacts on Forest Health 25
2005 Compliance Results 27
Banking in 2005 and Flow Control in 2006 28
NOX Allowance Trading in 2005 29
Continuous Emission Monitoring System (CEMS) Results 30
Compliance Options Used by NBP Sources in 2005 31
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NOX Budget Trading Program: 2005 Program Compliance and Environmental Results
Executive Summary
he NOX Budget Trading Program (NBP) is a
market-based cap and trade program creat-
ed to reduce emissions of nitrogen oxides
(NOX) from power plants and other large combus-
tion sources in the eastern United States. NOX is a
prime ingredient in the formation of ground-level
ozone (smog), a pervasive air pollution problem in
many areas of the eastern United States. The NBP
was designed to reduce NOX emissions during the
warm summer months, referred to as the ozone
season, when ground-level ozone concentrations
are highest. This report evaluates progress under
the NBP in 2005 by examining emission reduc-
tions, comparing changes in emissions to changes
in ozone concentrations, and reviewing compli-
ance results and market activity.
2005 Key Results
The NBP has successfully reduced ozone
season NOX emissions throughout the
region. In 2005, NBP ozone season NOX
emissions were:
- 11 percent lower than in 2004 even as power
generation increased by 7 percent (primarily
due to moving up the seasonal compliance
period for 11 Midwestern and Southern states
to May 1);
- 57 percent lower than in 2000 (before imple-
mentation of the NBP); and
- 72 percent lower than in 1990 (before imple-
mentation of the Clean Air Act
Amendments).
Ground-level ozone has improved since the
implementation of the NBP.
- Ozone formation depends greatly on weather
conditions, which can vary significantly from
year to year. To get a truer picture of how
emission changes impact ozone formation,
EPA adjusts ozone concentrations to account
for the influences of weather.
- Average ozone levels in the NBP region have
decreased by about 8 percent since 2002.
Ground level ozone has improved since the
NBP began in 2003.
- There is a strong association between areas
with the greatest reductions in NOX emis-
sions and nearby downwind sites exhibiting
the greatest improvements in ozone.
- In 2004, EPA officially designated 103 areas in
the eastern United States as 8-hour ozone
"nonattainment areas". These areas were
required to improve their ozone air quality
with the goal of attaining and maintaining
the national air quality standards for ground-
level ozone. Based on 2003 to 2005 air moni-
toring data, ozone air quality improved in all
of these areas. Nearly 70 percent of them (68
areas) now have air quality that is better than
the level of the standard. The NBP is the
major contributor to these improvements.
Through a wide range of pollution control
strategies and an active NOX allowance mar-
ket in 2005, sources achieved over 99 per-
cent compliance with the NBP.
- There were 2,570 units affected under the
NBP in 2005. Only three NBP sources (four
units total) did not hold sufficient allowances.
- Overall, trading activity increased from 2004
to 2005 with an active market, and allowance
prices were slightly lower and somewhat less
volatile than in 2004.
- The flexibility of the NBP provides sources
options to reduce NOX emissions, such as
adding NOX emission control technologies,
replacing existing controls with more
advanced technologies, or optimizing exist-
ing controls.
The Clean Air Interstate Rule (CAIR), issued
in March 2005, will continue the progress
demonstrated by the NBP. CAIR extends this
successful cap and trade program to control
both ozone and fine particles in 28 eastern
states and the District of Columbia.
Executive Summary
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NOX Budget Trading Program: 2005 Program Compliance and Environmental Results
Introduction
or more than three decades, the U.S.
Environmental Protection Agency (EPA)
has worked with state, local, and tribal rep-
resentatives to reduce emissions that contribute
to the formation of ground-level ozone. This pol-
lutant contributes to a number of serious health
and ecological effects.
Early ozone management policies focused on
reducing ozone by reducing emissions of one of
its two key precursors, volatile organic com-
pounds (VOCs). VOCs contribute to ground-level
ozone formation by reacting with nitrogen oxides
(NOX) in the presence of sunlight and heat.
Ozone levels have decreased substantially, by 20
percent, since 1980 (www.epa.gov/ozone.html).
The downward trend began to slow in the early
1990s. About that time, emerging science indicat-
ed that NOX controls, in addition to VOC con-
trols, might reduce ozone levels more effectively
across large regions of the United States.
EPA responded by developing programs to reduce
NOX emissions, including the NOX State
Implementation Plan (SIP) Call in 1998, designed
to reduce the regional transport of ozone and
ozone-forming pollutants in the eastern half of
the United States. All 19 affected states and the
District of Columbia chose to meet mandatory
NOX SIP Call reductions through participation in
the NOX Budget Trading Program (NBP), a
market-based cap and trade program for electric
generating and large industrial units.
The 2004 NBP report, Evaluating Ozone Control
Programs in the Eastern United States: Focus on
the NOX Budget Trading Program, concluded that
emissions from affected sources decreased by
about 50 percent since 2000, before the NBP was
implemented. In addition, the report showed that
reductions in ozone concentrations in most of
the eastern United States more than doubled
after implementation of the NBP, beginning in
2003. This 2005 NBP report builds on the previ-
ous analyses by assessing continued progress
under the program. The report:
Describes ozone formation, its health and envi-
ronmental effects, and provides background
on the NBP.
Evaluates the effectiveness of the NBP in 2005
by reviewing emission reductions and corre-
sponding changes in ozone concentrations.
Examines progress and compliance under the
NBP, including market activity, allowance
banking and progressive flow control, and
compliance options employed by sources
under the program.
Outlines the additional NOX reductions and
ozone improvements expected under CAIR
and how it will affect NBP states.
Introduction
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NOX Budget Trading Program: 2005 Program Compliance and Environmental Results
Section 1 Background: Ozone and
Major Control Programs
Ozone Formation and Health and
Ecological Effects
Beneficial ozone occurs naturally in the Earth's
upper atmosphere (the stratosphere), where it
shields the planet from the sun's harmful ultravi-
olet rays. At ground level, harmful ozone pollu-
tion forms when emissions of nitrogen oxides
(NOX) and volatile organic compounds (VOCs)
react in sunlight and heat. Major sources of NOX
and VOC emissions include motor vehicles, gaso-
line stations, drycleaners, industrial facilities, and
electric power plants (see Figure 1).
Meteorology plays a significant role in both the
formation and transport of ozone. The complex
photochemical reactions that transform emis-
sions of NOX and VOCs into ozone require warm,
sunny conditions. Because ground-level ozone is
highest when sunlight is most intense, the warm
summer months (May 1 to September 30) are typ-
ically referred to as the "ozone season."
Ozone levels can be high where there are concen-
trated local sources of NOX and VOCs, such as
urban and suburban areas. The location and con-
centration of ozone pollution are also affected by
regional transport the movement of ozone
and/or its precursors by the wind. Although, in
general, urban ozone concentrations are higher
than rural areas, ozone levels can be elevated in
some rural areas where there are few local emis-
sion sources because of the transport of ozone.
Exposure to ozone has been linked to a number
of health effects. At levels found in many urban
areas, ozone can aggravate respiratory diseases,
such as asthma, emphysema, and bronchitis, and
can reduce the respiratory system's ability to fight
off bacterial infections. Long-term, repeated
exposures to sufficient levels of ozone can cause
permanent damage to the lungs. Recent research
suggests that acute exposure to ozone likely con-
tributes to premature death.
Ground-level ozone also damages vegetation and
ecosystems, leading to reduced agricultural crop
and commercial forest yields and increased plant
susceptibility to diseases, pests, and other stresses,
such as harsh weather. Ozone can damage the
foliage of trees and other plants, adversely affect-
Weather Plays a Significant Role in Determining Ozone Pollution in a Given Area
Ozone is rarely emitted directly into the air. Instead, ground-level ozone forms when NOX and VOCs react
under the right atmospheric conditions. A dry, hot, sunny day is most favorable for ozone production. In
general, ozone concentrations increase during the day, peak in the afternoon when the temperature and
sunlight intensity are the highest, and drop back down again in the evening.
Wind transports ozone and/or its precursors. Therefore, depending on its direction, the wind can bring in
more pollution to an area, sometimes from hundreds of miles away. Weather also determines how quickly
ozone moves away or disperses from an area. Very light winds or no wind can allow ozone and the pollu-
tants that create ozone to build up, providing a more favorable environment for the chemical reactions
necessary to create ozone.
When looking at changes in ozone levels (see Section 3, Environmental Results), EPA uses a statistical
model to account for the impact of weather on ozone concentrations. While no model can account for all
complex meteorological factors that influence ozone, this adjustment provides a better estimate of the
underlying ozone trend (i.e., the impact of emission changes).
Section 1 Background: Ozone and Major Control Programs
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NOX Budget Trading Program: 2005 Program Compliance and Environmental Results
8-Hour Ozone Standard
To better protect public health, EPA revised its
national air quality standards for ozone in 1997,
establishing an 8-hour standard. The 8-hour
standard is 0.08 parts per million (ppm). An area
meets the standard if the 3-year average of the
annual fourth highest daily maximum 8-hour
average concentration is less than or equal to
0.08 ppm. For more information on the 8-hour
ozone standard and ozone nonattainment areas
in the United States, visit .
ing the landscape of cities and national parks,
forests, and recreation areas. For example, the
United States Forest Service observed ozone-
induced injury to the leaves of certain ozone sensi-
tive plants (from 1997 to 2002) in many areas of
the country, with the highest occurrences in the
Northeast. Refer to Section 3, Environmental
Results, for more information.
For more information on ground-level ozone,
including health and ecological effects, visit
.
Overview: Major Control Programs
forNOxandVOCs
The majority of NOX and VOC emissions in the
eastern United States come from mobile sources,
industrial processes, and the power industry.
Mobile onroad and nonroad sources (59 percent)
and electric generating units and large industrial
sources (22 percent) were responsible for the
majority of annual NOX emissions in the eastern
United States in 2005 (see Figure 1). This report
examines improvements in NOX emissions and
air quality under the NOX Budget Trading
Program (NBP), which reduces NOX emissions
from electric generating units and large industri-
Figure 1: Manmade Sources of NOX and VOC Annual Emissions
in the Eastern United States, 2005
NOX
VOCs
Other
19%
Electric
Generating
and Large
Industrial
Sources
22%
Mobile Onroad
Mobile
Onroad
24%
Mobile
Nonroad
15%
Notes:
Emissions are from Minnesota, Iowa, Missouri, Arkansas, Louisiana, and states east.
The Other category for NOX emissions includes some large industrial sources outside the NOX Budget Trading Program
(NBP), small industrial sources, and other smaller sources such as residential fuel combustion.
The emission data presented in this figure are measured or estimated values from EPA's National Emissions Inventory
(NEI). The NEI incorporates power industry data measured by the continuous emission monitoring system (CEMS); emis-
sions for other sources were estimated by interpolating between the 2002 final NEI data and a projected 2010 emission
inventory developed to support the Clean Air Interstate Rule (CAIR).
Source: EPA
Section 1 Background: Ozone and Major Control Programs
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NOX Budget Trading Program: 2005 Program Compliance and Environmental Results
Figure 2: Manmade Annual NOX and VOC Emissions
in the Eastern United States, 1990-1995,1997-2005
18
16
14
12
10
1990 1991 1992 1993 1994 1995
Year
2001
Year
NO,
-VOCs
Notes:
Emissions are from Minnesota, Iowa, Missouri, Arkansas, Louisiana, and states east.
1996 is not represented in the graphs because there was a change in the method used to collect and estimate emissions,
particularly for NOX emissions from stationary sources such as the power industry.
The emission data presented in this figure are measured or estimated values from EPA's National Emissions Inventory
(NEI). From 1990 to 2002, the final version of the NEI was used. Starting in 1997, the NEI incorporated power industry data
measured by continuous emission monitoring systems (CEMS). For this analysis, EPA used CEMS data for the power indus-
try for 2003 through 2005. Emissions for other sources for 2003 through 2005 were estimated by interpolating between
the 2002 final NEI data and a projected 2010 emission inventory developed to support the Clean Air Interstate Rule
(CAIR).
Source: EPA
al boilers and turbines. Given that these sources
accounted for about 22 percent of NOX emissions
in 2005 in the eastern United States, future
improvements in air quality as a result of reduc-
tions from these sources will be limited by their
contribution.
Figure 1 shows that 98 percent of VOC emissions
came from industrial processes (including sol-
vents) and mobile sources. A significant portion
of VOC emissions might also come from natural
sources, such as trees, especially during the
ozone season. Note that the results presented in
this report do not include emissions from natural
sources.
EPA has developed more than a dozen programs
since 1990 to improve ozone air quality by reduc-
ing emissions of NOX and VOCs from major
sources. These programs complement state and
local efforts to improve ozone air quality and
meet national standards. Together, these pro-
grams have achieved significant emission reduc-
tions across the eastern United States. Figure 2
shows that total NOX and VOC emissions have
decreased since 1990, with the largest reductions
occurring after 1997.
This report focuses on electric generating units
and large industrial boilers and turbines covered
under the NBP. For information on control pro-
grams for other major sources of NOX and VOCs,
such as mobile sources and industrial processes,
refer to the 2004 NOX Budget Trading Program
Report at .1
"Evaluating Ozone Control Programs in the Eastern United States: Focus on the NOX Budget Trading Program, 2004,"
.
Section 1 Background: Ozone and Major Control Programs
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NOX Budget Trading Program: 2005 Program Compliance and Environmental Results
Snapshot: National and Regional Power Industry NOX Control Programs
Acid Rain Program (ARP) Congress established the ARP as part of the Clean Air Act Amendments of
1990. This annual, national program reduces sulfur dioxide (SO2) from electric generating units through a
cap and trade program. The ARP also reduces NOX emissions from some of these units, but unlike the SO2
portion of the ARP, there is no NOX allowance trading or cap on NOX emissions. Instead, the ARP NOX provi-
sions apply boiler-specific NOX emission limits (Ib/mmBtu) on certain coal-fired boilers that are subject to the
SO2 requirements of the ARP. NOX limits under the ARP applied beginning in 1996 for some of the largest
boilers subject to the SO2 requirements; a second phase to reduce NOX emissions from additional coal-fired
generating units began in 2000. For more information, visit .
Ozone Transport Commission (OTC) NOX Reduction Programs The OTC was established under the
1990 Clean Air Act Amendments. States in the Northeast collaborated to help reduce summertime
ground-level ozone in the region by achieving ozone season NOX reductions in several phases. In 1995,
sources were required to reduce their annual NOX emission rates to meet Reasonably Available Control
Technology (RACT) requirements. From 1999 to 2002, states achieved reductions in NOX from fossil
fuel-fired electric generating units and large industrial boilers and turbines through Phase I of an ozone
season cap and trade program, known as the OTC NOX Budget Program. The second phase of the OTC NOX
Budget Program was slated to begin on May 1, 2003, but was superseded by EPA's NOX State
Implementation Plan Call (NOX SIP Call). The OTC states include Connecticut, Delaware, Maine, Maryland,
Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, Virginia, and
Washington, D.C. (Maine, Vermont, and Virginia did not join the OTC trading program. New Hampshire is
not subject to requirements of the NOx SIP Call). For more information on the OTC, visit
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NOX Budget Trading Program: 2005 Program Compliance and Environmental Results
Overview: NOX Budget Trading
Program, 2005
Over the past 3 years, the NOX SIP Call has
achieved significant NOX reductions, contributing
to improvements in regional air quality across
the Northeast and mid-Atlantic regions. The pri-
mary mechanism for achieving these reductions
is the NBP.
NOX Budget Trading Program: Affected
States and Compliance Dates
In 2005, all NBP affected sources were required to
comply for the full ozone season, May 1 through
September 30.
When reviewing results under the NBP, it is
important to understand program implementa-
tion and compliance dates. Compliance with the
NOX SIP Call was scheduled to begin on May 1,
2003 for the full ozone season. However, litigation
delayed implementation until May 31, 2004. The
states previously in the OTC NOX Budget
Program adopted the original compliance date in
transitioning to the NOX SIP Call and therefore
began participating in the NBP on May 1, 2003
(see Figure 3). These states include Connecticut,
Delaware, Maryland, Massachusetts, New Jersey,
New York, Pennsylvania, Rhode Island, and the
District of Columbia. Due to the litigation, the
first compliance period did not begin until May
31, 2004, a month into the normal ozone season
for states not previously in the OTC NOX Budget
Program (see Figure 3). These states include
Alabama, Illinois, Indiana, Kentucky, Michigan,
North Carolina, Ohio, South Carolina, Tennessee,
Virginia, and West Virginia. The affected portions
of Missouri and Georgia are required to comply
with the NOX SIP call as of May 1, 2007. However,
EPA has stayed the NOX SIP Call requirements for
Georgia while it responds to a petition to recon-
sider Georgia's inclusion in the NOX SIP Call.
Figure 3: NOX SIP Call Program Implementation
Compliance Deadline
May 2003
May 2004
May 2007
Source: EPA
Section 1 Background: Ozone and Major Control Programs
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NOX Budget Trading Program: 2005 Program Compliance and Environmental Results
Key Components of the NBP
The NBP is an ozone season (May 1 to September 30) cap and trade program for electric generating units
and large industrial boilers and turbines. The program has several important features:
Under the NBP, the region-wide cap is the sum of the state emission budgets EPA established under the
NOX SIP Call to help states meet their air quality goals.
Authorizations to emit, known as emission allowances, are then allocated to affected sources based on
state trading budgets. The NOX allowance market enables sources to trade (buy and sell) allowances
throughout the year.
At the end of every ozone season, each source must surrender sufficient allowances to cover its ozone
season NOX emissions (each allowance represents 1 ton of NOX emissions).This process is called annual
reconciliation.
If a source does not have enough allowances to cover its emissions, EPA will automatically deduct
allowances from the following year's allocation at a 3:1 ratio.
If a source has excess allowances because it reduced emissions beyond required levels, it can sell the
unused allowances or "bank" (i.e., save) them for use in a future ozone season. The NBP also has "pro-
gressive flow control" provisions, which were designed to discourage extensive use of banked
allowances in a particular ozone season. When the bank in any given year exceeds 10 percent of the
regional trading budget for the next year, flow control is triggered and determines the amount of NOX
emissions a banked allowance can offset. More information on flow control is available in Section 4,
Compliance and Market Activity.
To accurately monitor and report emissions, sources use continuous emission monitoring systems
(CEMS) or other approved monitoring methods under EPA's stringent monitoring requirements (40 CFR
Part 75).
For more information on the NBP, including state trading budgets, allowance allocations, and compliance
supplement pool (CSP) allowances, refer to .
NOX Budget Trading Program: Affected
Units in 2005
There were 2,570 units affected under the NBP in
2005. These include electric generating units,
which are large boilers, turbines, and combined
cycle units used to generate electricity for sale. As
shown in Figure 4, electric generating units con-
stitute 87 percent of all regulated NBP units. The
program also applies to large industrial units that
produce electricity and/or steam primarily for
internal use. Examples of these units are boilers
and turbines at heavy manufacturing facilities,
such as paper mills, petroleum refineries, and iron
and steel production facilities. These units also
include steam plants at institutional settings, such
as large universities or hospitals. Some states have
included other types of units, such as petroleum
refinery process heaters and cement kilns.
Figure 4: Number of Units in the NOX
Budget Trading Program by Type, 2005
720
1,079
(42%)
'433
(17%)
Notes:
Total affected units in 2005 = 2,570.
For a breakdown of NBP units by ozone season genera-
tion, refer to Section 4, Compliance and Market Activity.
Source: EPA
Section 1 Background: Ozone and Major Control Programs
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NOX Budget Trading Program: 2005 Program Compliance and Environmental Results
Section 2 Changes in Emissions
o assess the effectiveness of the NOX Budget
Trading Program (NBP) in 2005, this section
compares nitrogen oxides (NOX) emission
levels in 2005 to levels in 1990 and 2000 (baseline
years), and 2003 and 2004. These results include
emissions from affected sources in states includ-
ed in the NBP (see Figure 3).
Ozone Season NOX Reductions
under the NOX Budget Trading
Program
Figure 5 shows the total ozone season NOX emis-
sions for all affected sources in the NBP region in
2005 compared to 1990, 2000, 2003, and 2004. In
2005, NBP sources emitted about 530,000 tons of
NOX, reducing emissions by about 11 percent
from 2004, 57 percent from 2000, and 72 percent
from 1990.
Many of the NOX reductions since 1990 are a
result of programs implemented under the Clean
Air Act such as the Acid Rain NOX Reduction
Program and other state, local, and federal pro-
Baseline Years for Measuring
Progress under the NOX Budget
Trading Program
EPA has chosen two baseline years for measur-
ing progress under the NBP:
1990, which represents emission levels
before the implementation of the 1990
Clean Air Act Amendments.
2000, because most of the reductions due
to the implementation of earlier NOX regula-
tory programs under the 1990 Clean Air Act
Amendments had already occurred by 2000,
but sources were not yet implementing the
NBP at that time.
grams. The significant decrease in NOX emissions
after 2000 largely reflects reductions achieved by
the Ozone Transport Commission (OTC) and NBP.
NOX emissions in 2005 were lower than in 2004,
despite a 7 percent increase in total heat input as
sources continue to reduce average NOX emission
rates, expressed as pounds of NOX emitted per
Figure 5: Ozone Season Emissions under the NOX Budget Trading Program
Source: EPA
1990
2000
2003
2004
2005
Ozone Season (May 1 -September 30)
Section 2 Changes in Emissions
11
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NOX Budget Trading Program: 2005 Program Compliance and Environmental Results
What Is Heat Input?
Heat input is the heat derived from the combus-
tion of fuel in a unit. It is a simple way to track
ozone season power generation or utilization of
affected units. The overall ozone season heat
input to affected NBP sources increased by
about 7 percent between 2004 and 2005,
although there was no significant change in the
number of NBP sources. However, despite the
increase in ozone season power generation in
2005, NBP sources still achieved substantial NOX
emission reductions (11 percent).
million Btu of heat input (Ib/mmBtu). Figure 6
shows the average monthly emission rates for the
2004 and 2005 ozone seasons. The average rate
decreased each month when comparing 2004 to
2005, with the most notable reductions occurring
in May. Between the 2004 and 2005 ozone sea-
sons, emission rates in May dropped almost 39
percent. This sharp decline occurred primarily
Figure 6: Comparison of Average Monthly
NOX Emission Rates in the NOX Budget
Trading Program, 2004 and 2005
2004 NOX Rate
September
because sources in the non-OTC states did not
have to comply until May 31, 2004. Excluding
May, the average emission rate decreased each
month during the 2005 ozone season by 0.02
Ib/mmBtu, or almost 10 percent from 2004.
Table 1: Comparison of 2003, 2004, and 2005 Ozone Season NOX Emissions,
Heat Input, and NOX Emission Rates in the NOX Budget Trading Program
Units by
Fuel Type
Coal
Ozone Season NOX
Emissions (tons)
Ozone Season Heat Input Ozone Season NOx Emission
(mmBtu) Rate (Ib/mmBtu)
770,000
(94%)
548,000
(93%)
475,000
(90%)
4.72 billion
(84%)
4.71 billion
(83%)
4.90 billion
(81%)
0.33
0.23
0.19
25,000
(3%)
25,000
(4%)
32,000
260 million
(5%)
260 million
(5%)
310 million
(5%)
0.19
0.19
0.21
Gas
24,000
(3%)
20,000
(3%)
23,000
(4%)
590 million
(11%)
690 million
(12%)
840 million
(14%)
0.08
0.06
0.05
Total
819,000
593,000
530,000
5.57 billion
5.66 billion
6.05 billion
0.29
0.21
0.18
Notes:
The NOX tons are rounded to the nearest 1,000 tons and the heat input values are rounded to the nearest 10 million
mmBtus. Totals represent the sum of the rounded values. The 2003 through 2005 data represent the full ozone season.
May 1 to September 30, for each year.
The average emission rate is based on dividing total reported ozone season NOX emissions for each fuel category by the
total ozone season heat input reported for that category. The average emission rate expressed for the total is the heat
input weighted average for the three fuel categories.
Source: EPA
Section 2 Changes in Emissions
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NOX Budget Trading Program: 2005 Program Compliance and Environmental Results
Ozone Season Generation and
Emission Reductions by Fuel Type
Table 1 provides the total emissions and heat
input for NBP units by fuel type for the 2003, 2004,
and 2005 ozone seasons. Coal-fired units account-
ed for all of the emission reductions from 2004 to
2005, decreasing emissions by about 73,000 tons.
The majority of these reductions (about 67,000
tons) came from coal-fired units that operated
add-on controls during the 2005 ozone season (see
Section 4, Compliance and Market Activity).
The most dramatic result is the continued
decrease in NOX emission rates leading to these
reductions for coal-fired units, despite an
increase in heat input from these units between
2004 and 2005. The largest increase in heat input
came from oil-fired and gas-fired units, which
increased emissions by about 10,000 tons
between 2004 and 2005 largely due to increased
utilization.
State-by-State Reductions
The NBP states have achieved significant reduc-
tions in ozone season NOX emissions since the
baseline years 1990 and 2000 (as shown in Figure
7). All states have achieved reductions since 1990
as a result of programs implemented under the
Clean Air Act Amendments, with many states
reducing their emissions by more than half since
1990. The decrease in NOX emissions after 2000
largely reflects reductions achieved by the OTC
and NBP.
While the NBP achieved an 11 percent decrease in
NOX emissions overall from 2004 to 2005, Figure 8
shows that the emission reductions from 2004 to
2005 varied somewhat from state to state. Given
that 2005 was the first full ozone season compli-
ance period for states outside the OTC, those states
saw the most significant reductions from 2004.
Figure 7: NOX Budget Trading Program State-by-state Ozone Season NOX Emission
Reductions from 1990 and 2000
250,000
200,000
t. 150,000
o
a
E
Reductions between 1990
and 2000
Reductions between 2000
and 2005
Emissions in 2005
100,000
50,000
Notes:
Because emissions in the District of Columbia and Delaware increased between 2000 and 2005 by approximately 146 and
1,282 tons, respectively, there is no green bar shown in the figure for those states.
For each state, the total bar (i.e., the sum of the orange, green, and blue stacked bars) depicts emissions in 1990. The sum
of the green and orange stacked bars depicts emissions in 2000, and the orange bar depicts emissions in 2005.
Results in Alabama and Michigan represent ozone season emissions from only the affected portion of each state (see
Figure 3).
Source: EPA
Section 2 Changes in Emissions
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NOX Budget Trading Program: 2005 Program Compliance and Environmental Results
Figure 8: NOX Budget Trading Program Ozone Season
NOX Emissions from 1990, 2000, 2004, and 2005, and 2005 State Trading Budgets
[ | 1990 Emissions
[ | 2000 Emissions
| 2004 Emissions
I | 2005 Emissions
I I 2005 State Trading Budgets
Notes:
The non-OTC states are shaded in gray; OTC states are shown in yellow.
Results in Alabama and Michigan represent ozone season emissions from only the affected portion of each state (see
Figure 3).
Source: EPA
Eight states (Connecticut, Massachusetts, New
Jersey, New York, North Carolina, Rhode Island,
South Carolina, Tennessee) had ozone season
emissions below their trading budgets in 2005
(see Figure 8 and Table 2). Three of these states,
Connecticut, Massachusetts, and Rhode Island,
were below their trading budgets by at least 30
percent. Emissions in eight other states
(Alabama, Illinois, Indiana, Kentucky, Ohio,
Pennsylvania, Virginia, and West Virginia)
remained above their trading budgets. However,
all of these states reduced emissions from 2004
levels, and most were within 1 to 6 percent of
their respective budgets. In addition, Indiana,
Ohio, and West Virginia accounted for more than
50 percent of the total reductions from 2004 to
2005 (about 35,000 tons).
Cap and Trade: Guaranteed
Environmental Results
Cap and trade programs deliver results with a
mandatory cap on emissions while providing
sources flexibility in how they comply. Cap and
trade programs have proven highly effective in
reducing emissions from multiple sources on a
regional or larger scale. The mandatory cap on
emissions is critical to protect public health and
the environment and to sustain that protection
into the future. Under cap and trade programs,
affected sources are allocated authorizations to
emit in the form of emission allowances, but
the total number of allowances cannot exceed
the cap. The cap also serves to provide stability
and predictability to the allowance trading
market.
Section 2 Changes in Emissions
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NOX Budget Trading Program: 2005 Program Compliance and Environmental Results
Table 2: NOX Budget Trading Program Ozone Season
NOX Emissions for 1990, 2000, 2004, and 2005, and 2005 State Trading Budgets
1990 Emissions 2000 Emissions 2004 Emissions 2005 Emissions 2005 State
(tons) (tons) (tons) (tons) Trading Budgets
(tons)
CT
DC
DE
MA
MD
NJ
NY
PA
Rl
OTC States
AL
IL
IN
KY
Ml
NC
OH
SC
TN
VA
WV
Non-OTC States
Total NBP States
11,203
576
13,180
40,367
54,375
44,359
84,485
199,137
1,099
448,781
89,758
124,006
218,333
153,179
120,132
92,059
240,768
56,153
115,348
51,866
149,176
1,410,778
1,859,559
4,697
134
5,256
14,324
28,954
14,630
43,583
87,329
288
199,195
84,560
119,460
145,722
101,601
80,425
73,082
159,578
39,674
69,641
40,043
109,198
1,022,984
1,222,179
2,194
36
5,066
7,483
19,943
10,796
34,161
52,172
177
132,028
40,564
40,976
68,375
40,394
39,848
39,821
67,352
25,354
31,399
25,443
41,333
460,859
592,887
3,022
280
6,538
8,276
20,988
11,163
36,645
51,135
222
138,269
33,631
37,829
57,260
36,734
42,264
32,943
54,358
18,196
25,721
22,309
30,408
391,653
529,922
4,477
233
5,227
12,861
15,466
13,022
41,350
50,843
936
144,415
25,497
35,557
55,729
36,224
31,247
41,547
49,499
19,678
31,333
21,195
29,043
376,549
520,964
Note: Results in Alabama and Michigan represent ozone season emissions from only the affected portion of each state (see
Figure 3).
Source: EPA
The District of Columbia, Delaware, Maryland,
and Michigan had 2005 ozone season NOX emis-
sions that exceeded both the state trading budgets
and 2004 emission levels. Delaware, Maryland, and
Michigan had emission increases of 1,472,1,045,
and 2,416 tons above 2004 emission levels, respec-
tively. The District of Columbia's emissions tend to
fluctuate greatly from year to year as the affected
electric generating units provide peaking power to
meet seasonal demand (as opposed to more con-
sistently operating base load units). After 2000, the
District of Columbia's NOX emissions have
Section 2 Changes in Emissions
15
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NOX Budget Trading Program: 2005 Program Compliance and Environmental Results
remained low at less than 300 tons per ozone sea-
son. State-specific factors have strongly affected
NOX emissions in these states. For example,
Delaware experienced a significant jump in both
heat input and emissions, primarily associated
with two plants. In Maryland, three plants were
responsible for over 65 percent of NOX emissions
in 2005, and emission controls are planned at
these plants in upcoming years as required by a
federal consent decree and recently passed state
legislation.2 In Michigan, while emissions
increased 6 percent from 2004, heat input
increased 9 percent during 2005 the largest
increase within the non-OTC region.
Daily Emission Trends
Studies indicate that many of the health effects
associated with ozone are linked to daily expo-
sure. EPA developed the 8-hour ozone standard
to protect against such exposure. Although the
NBP ensures significant regional NOX reductions
throughout the course of the ozone season, there
have been concerns that a seasonal cap would
not sufficiently reduce short-term, peak NOX
emissions that can occur on hot, high electricity
demand days.
In practice, the NBP has had a significant impact
on daily emissions since the program began in
2003. Figure 9 compares daily NOX emissions dur-
ing 2003, 2004, and 2005 for the NBP region. In
2005, daily NOX emission levels for June through
September remained comparable to those in
2004. NOX emissions in May 2005 decreased near-
ly 47 percent from May 2004, illustrating the sig-
nificant reductions achieved by the non-OTC
states as they began participating in the program
on a full ozone season basis.
Figure 9: Comparison of Daily NOX Emission Levels, 2003-2005
8,000
7,000
Source: EPA
2 By 2008, under a federal consent decree, one of the companies with affected units in Maryland will be required to cap emissions from three
Maryland plants and one Virginia plant to 6,150 tons per ozone season. The emissions cap in this consent decree should reduce emissions
from existing plants in Maryland well below budget levels. The emissions from these four plants totaled over 14,800 tons in the 2005 ozone
season. In addition, Maryland recently passed legislation, the Healthy Air Act, which will further lower future NOX emissions.
Section 2 Changes in Emissions
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NOX Budget Trading Program: 2005 Program Compliance and Environmental Results
Section 3 Environmental Results
To better understand how the NOX Budget
Trading Program (NBP) affects ozone, this
section examines ozone air quality across
the NBP states since 1997 and then looks at
changes in ozone concentrations before and after
implementation of the NBP. In addition, this sec-
tion compares geographic patterns in ozone con-
centrations to reductions in nitrogen oxides (NOX)
emissions under the NBP. These analyses consider
the impact of weather, because variations in weath-
er conditions play an important role in determin-
ing ozone levels.
Ozone Monitoring Networks
For this report, EPA assembled data from 36
urban areas from the Air Quality System (AQS)
and 35 rural sites from the Clean Air Status and
Trends Network (CASTNET) to provide a more
complete picture of air quality in the eastern
United States (see Figure 10). EPA only used sites
with sufficient meteorological and ozone data
within each time period. For a monitor or area to
be included in this analysis, 50 percent of the days
for the ozone season had to have complete and
valid data.
Figure 10: Location of Urban and Rural Ozone Monitoring Networks
Urban Area (AQS)
Rural Site (CASTNET)
Notes:
States participating in the NBP in 2005 are shaded in green (referred to as the "NBP region").
Urban areas represent multiple monitoring sites. Rural areas represent single monitoring sites.
For more information on AQS, visit . For more information on CASTNET, visit
.
Source: EPA
Section 3 Environmental Results
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NOX Budget Trading Program: 2005 Program Compliance and Environmental Results
Figure 11: Trends in Seasonal Average 8-Hour Ozone Concentrations in the NOX Budget
Trading Program Region (Not Adjusted for Meteorology)
70-
40"
1997
1999
2000 2001
Ozone Season
2002
2003
2004
2005
AQS Urban Ozone Levels
CASTOET Rural Ozone Levels
NBP Region Ozone Levels
Note: Data presented in this figure are unweighted averages of 8-hour daily maximum ozone concentrations during the
ozone season for sites within the NBP region, shaded in green in Figure 10.
Source: EPA
General Trends: Changes in Eastern
Ozone Concentrations since 1997
Figure 11 shows trends in the "seasonal average"
8-hour ozone concentrations in the NBP region
from 1997 to 2005, showing the variability over
time in measured ozone concentrations at urban
and rural sites. The seasonal average ozone con-
centration is the average of daily maximum 8-
hour ozone concentrations from May 1 through
September 30. On average, 2005 ozone concentra-
tions in the NBP region remain below 2002 levels,
but are higher than in 2004 (not adjusted for
meteorology). In general, weather conditions
were more conducive to ozone formation in 2005
than in 2004.
Figure 11 also shows that on average, ozone in
rural areas is lower than ozone in urban areas but
follows a similar trend. These results provide a
seasonal average for NBP states and do not show
variations in ozone concentrations for specific
urban or rural areas. Although urban and metro-
politan areas typically experienced higher ozone
concentrations, non-urban areas can also experi-
ence high ozone levels due to transport and local
emission sources (e.g., mobile sources).
For example, the National Park Service reported
that based on a 3-year average of the fourth highest
daily maximum 8-hour ozone concentration (in
parts per billion, or ppb) for the years 2002 to 2004,
three National Park Units in the eastern United
States (Acadia, Cape Cod, and Great Smoky
Mountains) experienced high ozone concentra-
tions that exceeded 85 ppb.3
Ozone Changes after Adjusting for
Meteorology
Variations in weather conditions play an impor-
tant role in determining ozone levels. EPA uses a
statistical model to account for the weather-
related variability of seasonal ozone concentra-
tions to provide a more accurate assessment.4
3 National Park Service Air Resources Division. 'Annual Data Summary, 2004 Gaseous Pollutant Monitoring, Program Ozone, Sulfur Dioxide,
Meteorological Observations." U.S. Department of the Interior,
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NOX Budget Trading Program: 2005 Program Compliance and Environmental Results
Meteorology Matters
The graphics below show how the summers of 1997, 2002, and 2005 deviate from normal summer condi-
tions for temperature and precipitation (a surrogate for humidity). Normal conditions are determined by
averaging 30 years of temperature and precipitation data (1971 to 2000) at each site for June through
August. The information presented below is useful in evaluating the ozone forming potential for a particu-
lar ozone season.
Temperature
Precipitation
1997
Temperature- In general slightly
cooler than normal, except New
England and the deep South (near
normal or slightly warmer than
normal)
Precipitation- Mixed (drier than
normal in some areas and wetter
than normal in others)
2002
Temperature- Mostly warmer than
normal, except the South (near
normal to slightly cooler than
normal)
Precipitation- Drier than normal in
some most places except the
South and the upper Midwest
(wetter than normal)
2005
Temperature- Warmer than normal
nearly everywhere, especially in
the northern states
Precipitation- Mixed (some large
regions significantly wetter than
normal and others drier than
normal)
Departure from Normal Temperature Percent of Normal Precipitation
°C Above or Below Normal 1 o% . --, 190%
s-5 -2.5 +0.3 2.5 a 5 and Less"*" "''and More
Source: National Oceanic and Atmospheric Administration (NOAA), National Climatic Data Center
Section 3 Environmental Results
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NOX Budget Trading Program: 2005 Program Compliance and Environmental Results
Figure 12: Seasonal Average 8-Hour Ozone Concentrations in the NOX Budget Trading
Program Region before and after Adjusting for Weather
70-
60
.fc
01
s
o
40^
1997 1998 1999 2000 2001 2002 2003 2004 2005
Ozone Season
------- Unadjusted for Meteorology
Adjusted for Meteorology
Note: Data presented in this figure are unweighted averages of 8-hour daily maximum ozone concentrations during the
ozone season for sites within the NBP region, shaded in green in Figure 10.
Source: EPA
This report uses an assessment approach that
accounts for the impacts of weather by normaliz-
ing weather variations to provide a better esti-
mate of the underlying ozone trend and the
impact of NOX emission reductions. The resulting
estimates represent ozone levels anticipated
under typical weather conditions. This methodol-
ogy and the ozone estimates were provided by
EPA's Office of Air Quality Planning and Standards
(OAQPS), Air Quality Assessment Division,
www.epa.gov/airtrends.
Figure 12 shows trends in the seasonal average 8-
hour ozone concentrations before and after
adjusting for meteorology. The blue dotted line
shows the trend in unadjusted, observed values
at monitoring sites. The orange solid line illus-
trates the underlying ozone after removing
effects of weather to provide a more accurate
ozone trend for assessing changes in emissions.
When comparing two years with significantly dif-
ferent weather conditions and ozone forming
potential (e.g., 1997 vs. 2002), it is important to
account for the variation caused by meteorology.
For example, in general, lower temperatures
depressed ozone formation in 1997 while higher
temperatures increased ozone formation in 2002.
Removing the effects of weather using this type of
meteorological adjustment approach results in a
higher than observed ozone estimate for 1997 and
a lower than observed ozone estimate for 2002.
Ozone Changes: Focus on the NOX
Budget Trading Program
The 2004 NBP report, Evaluating Ozone Control
Programs in the Eastern United States: Focus on
the NOX Budget Trading Program, concluded that
the average reduction in ozone in the eastern
United States between 1997 and 2002 was about 4
percent (adjusted for meteorology), compared
with more than 10 percent between 2002 and
2004.5
Figures 13 and 14 illustrate changes in ozone con-
centrations between 1997 and 2002 and 2002 and
2005, after adjusting for meteorology. The average
reduction in ozone in the NBP region between
"Evaluating Ozone Control Programs in the Eastern United States: Focus on the NOX Budget Trading Program, 2004,"
.
Section 3 Environmental Results
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NOX Budget Trading Program: 2005 Program Compliance and Environmental Results
Figure 13: Percent Change in Seasonal
8-Hour Ozone, 1997 vs. 2002 (Adjusted for
Meteorology)
Figure 14: Percent Change in Seasonal
8-Hour Ozone, 2002 vs. 2005 (Adjusted for
Meteorology)
>
K
Increase Between 25% and 34%
Increase Between 15% and 25%
Increase Between 5% and 15%
Increase Less Than 5%
Decrease Less Than 5%
Decrease Between 5% and 15%
Decrease Between 15% and 23%
Margin of error is +/- 5 percent.
Note: Shaded region shows areas affected under the NBP
as of 2005.
Source: EPA
Note: Shaded region shows areas affected under the NBP
as of 2005.
Source: EPA
2002 and 2005 was about 8 percent. While, on
average, there was no improvement in ozone in
the NBP region between 2004 and 2005 (about 0.5
percent increase as shown in Figure 12), these
results show that the majority of the ozone
progress made between 2002 and 2004 was
retained. In general, weather conditions in 2005
were similar to weather conditions in 2002 (i.e.,
both years had higher than average ozone forming
potential). Before adjusting for meteorology, the
average reduction in ozone between 2002 and 2005
was also about 8 percent.
Figure 15 shows the relationship between reduc-
tions in power industry NOX emissions and reduc-
tions in ozone after implementation of the NBP.
Between 2002 and 2005, there were decreases in
ozone across all NBP states, with the largest reduc-
tions occurring in Connecticut, New York, North
Carolina, Pennsylvania, and West Virginia. There
were some increases in the southern United States,
specifically in Florida (which is not in the NBP).
Generally, there is a strong association between
areas with the greatest NOX emission reductions
and downwind sites exhibiting the greatest
improvement in ozone. This suggests that levels of
transported NOX emissions have been reduced in
the eastern United States. While this report does
not attribute all ozone reductions after 2002 to the
NBP, it does show that the NBP has played a key
role in reducing ozone concentrations.
Other recent studies support the key findings of
this report. Gego et al. examined the effectiveness
of the NOX SIP Call by quantifying changes in daily
maximum 8-hour ozone concentrations at moni-
toring sites in the eastern United States before
(1997 to 1998) and after (2003 to 2004) implemen-
tation of the program.6 The researchers primarily
used CASTNET data for this analysis because these
measurements are taken in rural areas where
ozone production depends strongly on NOX con-
Gego, Edith P, et. al. "Observation-based assessment of the impact of nitrogen oxides emissions reductions on ozone air quality over the east-
ern United States" Journal of Applied Meteorology and Climatology, special issue on the NOAA-EPA Golden Jubilee Symposium (submitted).
Section 3 Environmental Results
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NOX Budget Trading Program: 2005 Program Compliance and Environmental Results
Figure 15: Reductions in Ozone Season Power Industry NOX Emissions and 8-Hour Ozone,
2002 vs. 2005
Power Industry NOX Emission
Reductions
8-Hour Ozone, Adjusted for
Meteorology
Ozone Season NOx Emissions
Tons Reduced
Increase Less Than 1,000
Decrease Less Than 25,000
Decrease Between 25,000 and 50,000
| | Decrease Between 50,000 and 75,000
Decrease Between 75,000 and 105,000
Between 15% and 22%
Increase Between 5% and 15%
Than 5%
s Than 5%
Decrease Between 5% and 15%
O Decrease Between 15% and 23%
Margin of error is +1- 5 percent.
Note: From 2002 to 2005, Delaware (943 tons). New Hampshire (216 tons), Connecticut (76 tons), and Vermont (44 tons)
show small increases in ozone season NOX emissions.
Source: EPA
centrations and is nearly independent of VOCs.
After adjusting for meteorology, this study found
that ozone concentrations are on average 13 per-
cent less (ranging from 4 to 27 percent across all
sites) than they were before the program. This
study also used a back trajectory analysis and
found that NOX emission reductions in the Ohio
River Valley resulted in substantial improvements
in ozone air quality in downwind regions, especial-
ly east and northeast of the Ohio River Valley. This
study concluded that the NOX SIP Call has been
effective in reducing interstate ozone transport and
helping to improve ozone air quality in the eastern
United States.
Section 3 Environmental Results
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NOX Budget Trading Program: 2005 Program Compliance and Environmental Results
Improvements in 8-Hour Ozone Concentrations
In April 2004, based generally on 2001 to 2003 data, EPA designated 126 areas as nonattainment for the
8-hour ozone standard.7 Of those areas, 103 are in this part of the eastern United States (see figures below)
and are home to about 100 million people (US Census, 2000). Based on 2003 to 2005 data, 68 of the 103
areas (nearly 70 percent) either have ozone air quality that is better than the level of the 8-hour standard or
meet the standard and have been redesignated to attainment. These improvements bring cleaner air to
about 20 million people living in these 68 areas. Several of these areas have reviewed or are reviewing the
requirements for redesignation as described in the Clean Air Act Section 107. Nearly 81 million people live
in the remaining 31 areas in this part of the eastern United States. On average, ozone concentrations in
these areas improved by 8 percent. Given that the only major relevant emission reduction that occurred
after 2003 is the NBP, it is clear that the NBP is the major contributor to these improvements in ozone air
quality.
8-Hour Ozone Nonattainment Areas,
April 2004 (2001-2003 Air Quality Data)
Areas Remaining Above Standard
(2003-2005 Air Quality Data)
Note: Included on the maps, but excluded from the analysis, are four areas with incomplete data for 2003 to 2005
(Cass Co, Ml; Dayton-Springfield, OH; Essex Co (Whiteface Mtn), NY; La Porte, IN).
1 40 CFR Part 81, Air Quality Designations and Classification for the 8-Hour Ozone National Ambient Air Quality Standards (NAAQS).
Section 3 Environmental Results
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NOX Budget Trading Program: 2005 Program Compliance and Environmental Results
Space-Time Modeling Approach to Adjusting for Meteorological Influences on
Ozone
There are different approaches to account for the influences of meteorology on ozone formation. This
analysis presents results from a space-time modeling approach developed by EPA's Office of Research and
Development. The method can provide the uncertainties surrounding ozone trend estimates and can be
expanded to predict ozone at any location (e.g., even between ozone monitoring sites) and for any time
period. The graphic below shows the percent change in seasonal average ozone concentrations at rural
CASTNET sites using the space-time modeling approach. The results from this analysis corroborate the
findings presented throughout the report; on average ozone concentrations have decreased across the
eastern United States since 2002 (see figure below). By exploring and developing new methodologies for
assessing ozone, EPA hopes to continue advancing assessment capabilities into the future.
Percent Change in Seasonal 8-Hour Ozone, 2002-2004
Increase Between 15% and 22%
Increase Between 5% and 15%
Increase Less Than 5%
Decrease Less Than 5%
Decrease Between 5% and 15%
Decrease Between 15% and 23%
Source: EPA
Section 3 Environmental Results
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NOX Budget Trading Program: 2005 Program Compliance and Environmental Results
Ozone Impacts on Forest Health
As with human health, EPA is concerned about
the impacts of air pollution on ecological sys-
tems. Ground-level ozone-induced effects on
trees and forests include reduced growth and/or
reproduction and increased susceptibility to dis-
ease, pests, and other environmental stresses
(e.g., harsh weather). Ground-level ozone can also
cause visible injury to leaves and foliage.
The United States Forest Service Forest Health
Monitoring Program (FHM) uses visible foliar
injury as an indicator that ground-level ozone is
impacting trees and forests. The Ozone Biosite
Index (see Table 3) was developed based on the
proportion of damaged leaves and the severity of
symptoms to the number of non-injured leaves
within a defined forested area.8 The Forest
Service uses the Ozone Biosite Index to survey
forested areas in the United States. The most
recent data are presented as an average value
from 1999 to 2002 (see Figure 16). This analysis
shows that foliar injury occurred more extensive-
ly in the eastern United States than the western
United States in this time period, especially in the
Mid-Atlantic and the Southeast. These data show
visible foliar injury before the NOX emission
reductions under the NBP took effect. Recent
improvements in ozone due to emission control
programs have occurred in many areas where for-
est ecosystems had experienced the most visible
foliar injury from ozone exposure. While it will
take time for forest ecosystems to respond to
ozone improvements, as data become available
(i.e., 2002 to 2005 data), EPA will continue to
examine the impacts of ozone on forest
indicators.
Table 3: Ozone Biosite Index Categories, Risk Assumption, and Possible Impact
Biosite Index Bioindicator Assumption of Risk to Possible Impact
Response Forest Resource
Oto<5.0
5.0 to < 15.0
15.0 to < 25.0
>25
Little or No Foliar Injury
Light to Moderate Foliar
Injury
Moderate to Severe
Foliar Injury
Severe Foliar Injury
None
Low
Moderate
High
Visible injury to isolated genotypes of sen-
sitive species; e.g., common milkweed,
black cherry.
Visible injury to highly sensitive species,
e.g., black cherry; effects noted primarily
at the tree level.
Visible injury to moderately sensitive
species, e.g., tulip poplar; effects noted
primarily at the tree level.
Visible injury leading to changes in struc-
ture and function of the ecosystem.
Source: Smith, G.C. FHM second ozone bioindicator workshop - summary of proceedings. Unpublished manuscript. 12 p.
On file with: USDA Forest Service, Forest Health Monitoring Program, P.O. Box 12254, Research Triangle Park, NC 27709
* Ambrose, MJ.; Conkling, B.L., eds. In press. Forest Health Monitoring 2005 national technical report. Gen. Tech. Rep. Asheville, NC: U.S.
Department of Agriculture Forest Service, Southern Research Station.
Section 3 Environmental Results
25
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NOX Budget Trading Program: 2005 Program Compliance and Environmental Results
Figure 16: Average Annual Biosite Index by Ecoregion Section, 1999-2002
Note: Table 3 provides a description of each category in the Ozone Biosite Index.
Source: Forest Health Monitoring 2005 National Technical Report9
9 Ambrose, MJ.; Conkling, B.L., eds. In press. Forest Health Monitoring 2005 national technical report. Gen. Tech. Rep. Asheville, NC: U.S.
Department of Agriculture Forest Service, Southern Research Station.
Section 3 Environmental Results
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NOX Budget Trading Program: 2005 Program Compliance and Environmental Results
Section 4 Compliance and Market
Activity
Sources achieved over 99 percent compliance
with the NOX Budget Trading Program (NBP) in
2005. This section examines compliance under
the NBP in 2005 and reviews allowance trading
and pricing trends in this maturing market. In
addition, this section reviews the monitoring and
control methods employed by sources to meet
program requirements.
2005 Compliance Results
Under the NBP, sources must hold sufficient
allowances to cover their ozone season nitrogen
oxides (NOX) emissions each year. Sources can
maintain the allowances in compliance accounts
(established for each unit) or in an overdraft
account (established for each facility with more
than one unit). The sources have a 2-month peri-
od following the end of the control period to buy
or sell allowances and/or move allowances
between accounts to ensure their emissions do
not exceed allowances held. After the 2-month
period, EPA reconciles emissions with allowance
holdings to determine program compliance.
Sources may not transfer allowances until annual
reconciliation is complete.
There were 2,570 units affected under the NBP in
2005. Only three NBP sources (4 units total) did
not hold sufficient allowances to cover their emis-
sions. Table 4 summarizes the allowance reconcil-
iation process for 2005.
Table 4: NOX Allowance Reconciliation the Summary for the NOX Budget Trading Program, 2005
Total Allowances Held for Reconciliation (2003 through 2005 Vintages)
Allowances Held in Compliance or Overdraft Accounts
729,326
700,782
Allowances Held in Other Accounts*
Allowances Deducted in 2005
Allowances Deducted for Actual Emissions
28,544
534,005
529,830
Additional Allowances Deducted under Progressive Flow Control (RFC)
4,168
Termination of 2004 Early Reduction Credits (or Compliance Supplement Pool) Allowances*
Banked Allowances (Carried into 2006 Ozone Season)
Allowances Held in Compliance or Overdraft Accounts
195,321
160,604
Allowances Held in Other Accounts*
Penalty Allowances Deducted**** (from Future Year Allocations)
34,717
* Other Accounts refers to general accounts in the NOX Allowance Tracking System (NATS) that can be held by any source,
individual, or other organization, as well as state accounts.
** Compliance supplement pool (CSP) allowances can only be used for 2 years. CSP allowances not used for reconciliation
in 2005 have been retired permanently.
*** Total includes 6,173 new unit allowances returned to state holding accounts.
**** These penalty deductions are made from future vintage year allowances, not 2005 allowances. An additional 264
penalty allowances are owed by one source and will be deducted in the future.
Section 4 Compliance and Market Activity
27
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NOX Budget Trading Program: 2005 Program Compliance and Environmental Results
Banking in 2005 and Flow Control
in 2006
Under cap and trade programs in general, and
the NBP specifically, banking allows companies
to decrease emissions below the amount of
allowances they hold and then save the unused
allowances for future use. Banking results in envi-
ronmental and health benefits earlier than
required and provides an available pool of
allowances that could address unexpected
events, or smooth the transition into deeper
emission reductions.
Figure 17 shows the number of allowances allo-
cated each year, the allowances banked from the
previous year, and the total ozone season emis-
sions for NBP sources from 2003 to 2005. Sources
banked over 195,000 allowances in the 2005
ozone season (see Table 4), which will be avail-
able for use in 2006 for program compliance. This
is about 6 percent lower than the nearly 208,000
allowances sources banked by the end of the 2004
ozone season, which were available for use in
2005 (as shown in Figure 17).
The NBP's progressive flow control provisions
were designed to discourage extensive use of
banked allowances in a particular ozone season.
Flow control is triggered when the total number
of allowances banked for all sources exceeds 10
percent of the total regional budget for the next
year. When this occurs, EPA calculates the flow
control ratio by dividing 10 percent of the total
regional NOX trading budget by the number of
banked allowances (a larger bank will result in a
smaller flow control ratio). The resulting flow
control ratio establishes the percentage of
banked allowances that can be deducted from a
source's account on a ratio of one allowance per
ton of emissions. The remaining banked
allowances, if used, must be deducted at a rate of
two allowances per one ton of emissions. In 2005,
the flow control ratio was 0.25, and 4,168 addi-
tional allowances were deducted from the
allowance bank under the flow control provi-
sions. Flow control will be triggered again in
2006, at a slightly higher ratio of 0.27 (see "Flow
Control Will Apply in 2006," page 29, for details).
Figure 17: NOX Allowance Allocations and the Allowance Bank, 2003-2005
800
2003
2004
Ozone Season
2005
I Banked Allowances from Previous Year
H Allowances Allocated
Control Period Emissions
Notes:
The 2003 emissions and allocations totals includes only the OTC states. The 2004 emissions total includes the OTC states
emissions (from May 1 to September 30) plus the non-OTC states emissions (from May 31 to September 30).
Allowances allocated include base budget, compliance supplement pool (CSP), and opt-in allowances. CSP allowances
may not be used beyond the 2005 ozone season. For more information on allowance allocations, visit
www.epa.gov/airmarkets/fednox.
Source: EPA
Section 4 Compliance and Market Activity
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NOX Budget Trading Program: 2005 Program Compliance and Environmental Results
Flow Control Will Apply in 2006 How Will It Affect Sources?
2006 Regional Budget:
Banked Allowances after 2005:
Flow Control Trigger:
520,957 Allowances
195,321 Allowances
195,321/520,957 = .375 (> than 10 percent),
Triggering Flow Control for 2006
The 2006 flow control ratio = 0.27 (determined by dividing 10 percent of the total regional trading
budget by the total number of banked allowances, or 52,096/195,321).
The flow control ratio applies to banked allowances in each source's compliance and overdraft
allowance accounts at the time of compliance reconciliation. For example:
- If a source holds 1,000 banked allowances at the end of 2006, it can use 270 of those allowances on a
1-for-1 basis and the remaining 730 allowances on a 2-for-1 basis.
- If the source used all 1,000 banked allowances for 2006 compliance, the banked allowances could
cover only 635 tons of NOX emissions (i.e., 270 + 730/2).
NOX Allowance Trading in 2005
There are three main types of allowance
transactions:
Transfers within a company or between related
entities (e.g., holding company transfers to a
small operating subsidiary), including transfers
between a unit compliance account and any
account held by a company with an ownership
interest in the unit.
Transfers between separate economic entities.
This may include companies with contractual
relationships such as power purchase agree-
ments, but excludes parent-subsidiary types of
relationships. These transfers are categorized
broadly as "economically significant trades."
Transfers from or to a state as allowance allo-
cations or allowance surrenders.
In 2005, economically significant trades repre-
sented about 30 percent of the total transfers
between entities other than a state. There were
approximately 228,000 allowances involved in
economically significant trades in 2005, an
increase of about 34,000 allowances from 2004
(see Figure 18). The economically significant
trades provide a strong indicator of true market
activity, because they represent an actual
exchange of assets between unaffiliated
participants.
Industrial sources accounted for over 6 percent
of the economically significant trade volume in
2005, which was down from 2004 levels. This level
of activity is proportional to the industrial units'
regional emissions contribution of slightly less
than 7 percent. The high level of 2004 trading
activity for industrial sources was the result of a
significant number of allowances purchased by
this group of sources. In 2005, that trend was
reversed as the industrial sources transferred far
more allowances to others than they received. In
most trades, industrial sources are trading with
electric generating companies, with only a few
trades involving industrial sources on both sides
of the transaction.
Section 4 Compliance and Market Activity
29
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NOX Budget Trading Program: 2005 Program Compliance and Environmental Results
Figure 18: Estimated Volumes of
Economically Significant Trades under the
NOX Budget Trading Program, 2003-2005
8 150,000
Total Allowances Traded
Traded by Industrial Sol
Note: As part of compiling this information for the 2005
report, EPA has reexamined all allowance transfer data from
2003 and 2004, and has revised the numbers for 2003 and
2004 presented in previous reports. Generally, EPA's esti-
mate of economically significant trade volume in those
years has decreased based on further analysis of outside
data sources (such as company Web sites and Securities
and Exchange Commission filings) to identify corporate
relationships and ownership interests in units. The 2003
data also have been adjusted to correct a computational
error. Because trades are not reported by market partici-
pants with respect to whether they are economically signif-
icant, EPA presents these data as a general estimate only.
Source: EPA
Figure 19: Vintage Year NOX Allowance
Prices by Month of Sale for the NOX Budget
Trading Program
Vintage Year NO,, Allowance Price
Oct'02 Feb'03 Jun'03 Oct'03 Feb'04 Jun'04 Oct'04 Feb'OS Jun'05 Oct'OS Feb'06
Source: Evolution Markets, LLC and Cantor Environmental
Brokerage
NOX allowance prices in 2005 were slightly lower
and somewhat less volatile than during 2004 (see
Figure 19). Potential reasons for the price decline
may include sources' need to use remaining com-
pliance supplement pool (CSP) allowances before
their 2005 expiration and increased confidence
from understanding the impacts of the Clean Air
Interstate Rule (CAIR) finalized in March 2005. In
addition, the general price differential between
vintage years 2004 and 2005 versus 2006 through
2008 reflects the discount applied to banked
allowances as a result of flow control.
NOX allowance prices can reflect market uncer-
tainties as companies evaluate ongoing trends in
control installations, energy demand, and other
external factors that affect the overall costs of
control. Additional influences on allowance pric-
ing include progressive flow control and integra-
tion with other emission control programs, such
as CAIR.
Continuous Emission Monitoring
System (CEMS) Results
In order for NOX allowances to be accurately
tracked and traded, NBP sources must use con-
sistent emissions monitoring procedures to
determine their emissions. Accurate and consis-
tent monitoring ensures that all allowances in
the NBP have the same value (i.e., a ton of NOX
emissions from one NBP source is equal to a ton
of NOX emissions from any other source in the
program). Sources are required to conduct strin-
gent quality assurance tests of their monitoring
systems, such as daily calibrations, quarterly lin-
earity checks, and semi-annual or annual relative
accuracy test audits (RATAs). These tests not
only verify that the monitoring systems are meas-
uring accurately, but also compare measured
data to a standard reference method. Analysis of
the quality-assured CEMS data reported by NBP
sources in 2005 convincingly demonstrates the
accuracy of the emission data.
In 2005, both the electric generating units and
industrial units passed at least 98 percent of the
quality assurance tests required of their monitoring
30
Section 4 Compliance and Market Activity
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NOX Budget Trading Program: 2005 Program Compliance and Environmental Results
systems. Industrial sources, many of which have
only been monitoring under EPA's detailed moni-
toring procedures (40 CFR Part 75) since 2003,
were able to perform at nearly the same level as
electric generating units, many of which have been
monitoring under Part 75 for more than a decade.
The NBP sources reported quality-assured
emission data for more than 99 percent of their
operating hours in 2005. Part 75 requires conserv-
atively high substitute data values to be reported
for missing data periods, but substitute data were
used less than 1 percent of the time in 2005 and
therefore had little impact on the NOX emissions
reported by NBP sources.
Compliance Options Used by NOX
Budget Trading Program Sources in
2005
Sources may select from a variety of compliance
options to meet the emission reduction targets of
the NBP in ways that best fit their own circum-
stances, such as:
Decreasing or stopping generation from units
with high NOX emission rates, or shifting to
lower emitting units, during the ozone season.
Using NOX combustion controls that modify or
optimize the basic combustion process to con-
trol the formation of NOX.
Using add-on emission controls, such as selec-
tive catalytic reduction (SCR) or selective non-
catalytic reduction (SNCR).
Purchasing additional allowances from other
market participants whose emissions were
lower than their allocations.
Before implementation of the NBP, a large num-
ber of electric generating units and some indus-
trial units added combustion controls to meet
applicable NOX emission limits of either the Acid
Rain Program (ARP) or state regulations. For
boilers, furnaces, and heaters, NOX combustion
controls include low NOX burner and overfire air
technologies, which modify the combustion
Monitoring Options Available to
Sources
EPA has developed detailed procedures (40 CFR
Part 75) to ensure that sources monitor and
report emissions with a high degree of preci-
sion, accuracy, reliability, and consistency. Coal-
fired units are required to use CEMS for NOX
and stack gas flow rate (and if needed, CO2 or
O2 and moisture), to measure and record their
NOX emissions. Oil- and gas-fired units may
alternatively use a NOX CEMS in conjunction
with a fuel flowmeter to determine NOX emis-
sions. For oil- and gas-fired units that are either
operated infrequently to provide power during
periods of peak demand, or that have very low
NOX emissions, Part 75 provides low-cost alter-
natives to CEMS for estimating NOX emissions.
process to reduce formation of NOX from nitro-
gen found in the combustion air and fuel.
Add-on control technologies, such as SCR or
SNCR, have also been frequently installed for NOX
control. The majority of units that install add-on
controls use them in conjunction with their exist-
ing combustion controls to achieve greater emis-
sion reductions. SCR and SNCR are control
technologies that achieve NOX reductions by
injecting ammonia, urea, or another NOX -reduc-
ing chemical into the flue gas downstream of the
combustion unit to react with NOX, forming ele-
mental nitrogen (N2) and water. SCR, which adds
a catalyst to allow the reaction to occur in a
lower temperature range, can be applied to a
wider range of sources than SNCR and is capable
of greater NOX removal rates.
Sources subject to the NBP are required to report
pollution control equipment information, includ-
ing installation dates, in monitoring plans sub-
mitted to EPA. For this report, EPA verified the
source-reported EPA emission control equipment
data with state agencies, with an emphasis on
coal-fired units, to confirm the findings.10
10 Two affected states are still gathering data; all others have provided updated control status information.
Section 4 Compliance and Market Activity
31
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NOX Budget Trading Program: 2005 Program Compliance and Environmental Results
Figure 20: Number of Affected Electric Generating Units (EGUs) and Percent of Total
Ozone Season Electric Generation by Fuel and Control Type for 2004 and 2005
2004 ECU Population (Total, 2,232 Units)
203
2005 ECU Population (Total, 2,232 Units)
45%
2004 ECU Generation (Total, 547,659 GWh)
11,585
2005 ECU Generation (Total, 596,247 GWh)
86,383
27,226 14%
14,905
2%
219,975
Add-on Controlled Coal
Combustion Controlled Coal
Uncontrolled Coal
Controlled Oil and Gas
Uncontrolled Oil and Gas
213,555
Note: Add-on controls for coal units include SCR and SNCR. Combustion controls include various low NOX burner control
technologies, over-fire air, water injection, and others.
Source: EPA
EPA used the input from the state agencies to
update data where needed. EPA continues efforts
to verify that control equipment data are accu-
rate and complete.
Figure 20 shows the breakdown of how electric
generating units have employed emission con-
trols as of the 2005 ozone season compared to
the 2004 ozone season. The charts include the
results broken down both by number of units and
by the percent of total ozone season generation.
In the 2005 ozone season, there were 2,232 elec-
tric generating units affected under the NBP. The
results show that although the number of coal-
fired units with NOX emission controls (i.e., add-
on controls and/or combustion controls)
represents less than 30 percent of the total num-
ber of electric generating units, this sector repre-
sented almost 80 percent of total generation.
Uncontrolled units, either coal or gas and oil, rep-
resent about one-third of all units, but less than
Section 4 Compliance and Market Activity
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NOX Budget Trading Program: 2005 Program Compliance and Environmental Results
Figure 21: Number of Affected Industrial Units and Percent of Total
Ozone Season Steam Output by Fuel and Control Type for 2004 and 2005
2004 Industrial Population (Total, 340 Units)
2005 Industrial Population (Total, 338 Units)
62
2004 Industrial Steam Generation (Total,
233,424 million pounds - steam)
10,064
87,673
2005 Industrial Steam Generation (Total,
216,170 million pounds- steam)
12,331
Add-on Controlled Coal
I Combustion Controlled Coal
I Uncontrolled Coal
I Controlled Oil and Gas
Uncontrolled Oil and Gas
Source: EPA
10 percent of the total generation.
Figure 21 shows similar information for industri-
al units based on steam output rather than elec-
tric generation. In the 2005 ozone season, there
were 338 industrial coal-fired units affected
under the NBP. Based on reported monitoring
plan data, it appears that only about 3 percent of
the industrial coal-fired units use add-on NOX
controls; there were no cases where a coal-fired
industrial unit reported using SCR. Except for
turbines that can use a relatively simple form of
SCR, the technology is typically limited to larger
coal-fired electric generating units that can
achieve significant emission reductions in a cost-
effective way.
Overall, the number of electric generating units
and industrial units with NOX controls increased
from the 2004 to the 2005 ozone season. For
example, the number of controlled coal-fired
units (which includes units that added combus-
tion and/or add-on controls) increased by 18
from 2004 to 2005. The majority of coal-fired
units with new add-on controls in 2005 had pre-
existing combustion controls.
Section 4 Compliance and Market Activity
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NOX Budget Trading Program: 2005 Program Compliance and Environmental Results
Focus on Acid Rain Program Units in the NBP
EPA conducted a study that examined the NOX rate performance of 465 units in the NBP region. These
units were selected for this study because they were also required under 40 CFR Part 76 of the Acid Rain
Program to meet NOX emission rate limits. The specific group of units for this study consisted of dry bot-
tom wall fired and tangentially fired boilers which had NOX combustion controls in both the 2000 and
2005 ozone seasons but did not have add-on controls at the start of 2000. This study first quantified the
average ozone season NOX rate reductions among this group of units between 2000 (when the Phase II
limits took effect) and 2005. Next, EPA examined how these units achieved those reductions. For this study,
EPA used reported control equipment data, and then contacted a subgroup of about 60 units to obtain
more specific information on the methods used to lower NOX rates. The results are summarized below.
E
£
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NOX Budget Trading Program: 2005 Program Compliance and Environmental Results
Section 5 Future NOY Reductions
.A.
and Ozone Improvements: Transition to
the Clean Air Interstate Rule
Building upon the nitrogen oxides (NOX)
emission reductions of the NOX Budget
Trading Program (NBP) and the Acid Rain
Program, the Clean Air Interstate Rule (CAIR),
issued March 10, 2005, will permanently lower
power industry emissions of sulfur dioxide (S02)
and NOX in the eastern United States, achieving
significant reductions of these pollutants. In addi-
tion to addressing ozone attainment, CAIR assists
states in attaining the PM 2.5 National Ambient
Air Quality Standards (NAAQS) by reducing trans-
ported precursors, S02 and NOX. CAIR accom-
plishes this by creating three separate programs:
an ozone season NOX program and annual NOX
and S02 programs. Each of the three programs
uses a two-phased approach, with declining
emission caps in each phase based on highly cost-
effective controls on power plants. The first phase
will begin in 2009 for the NOX ozone season and
annual programs and 2010 for the S02 annual
program. The second phase for all three programs
will begin in 2015. Similar to the NOX SIP Call,
CAIR gives states the flexibility to reduce
emissions using a strategy that best suits their
circumstances and provides an EPA-administered,
regional cap and trade program as one option.
States are now choosing the strategy that best
enables them to achieve these mandated reduc-
tions and plans are due to be submitted to EPA for
approval by the fall of 2006.
Figure 22: Transition from the NOX Budget Trading Program to the Clean Air Interstate Rule
Compliance Deadline
i May 2003
May 2004
May 2007
H States Controlled for Fine Particles (Annual S02 and NO,)
8! Stales Controlled for Both Fine Particles (Annual S03 and NO,) and Ozone (Ozone Season NO,)
S3 States Controlled for Ozone (Ozone Season NOJ
Note:The affected portions of Missouri and Georgia are required to comply with the NOX SIP Call as of May 1, 2007.
However, EPA has stayed the NOX SIP Call requirements for Georgia while it responds to a petition to reconsider Georgia's
inclusion in the NOX SIP Call.
Source: EPA
Section 5 Future NOX Reductions and Ozone Improvements: Transition to the Clean Air Interstate Rule
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NOX Budget Trading Program: 2005 Program Compliance and Environmental Results
How CAIR Affects NOX Budget
Trading Program States
In 2009, NBP states affected under CAIR will
transition to the CAIR annual and/or ozone sea-
son programs. All NBP states, with the exception
of Rhode Island, are included in the CAIR NOX
ozone season program (see Figure 22). States can
meet their NBP obligations using the CAIR NOX
ozone season program and, as a result, CAIR
allows states to include all of their NBP sources
in the CAIR NOX ozone season program. EPA also
will allow Rhode Island to opt into the CAIR NOX
ozone season program so that it can continue to
participate in an interstate trading program. The
2009 CAIR NOX ozone season emission caps for
electric generating units are at least as stringent
as the NBP, and in some states are tighter. If a
state includes industrial units, the trading budget
for those units remains the same as the NBP.
CAIR also allows sources to bank and use pre-
2009 NBP allowances for the CAIR NOX ozone
season program compliance on a 1:1 basis, there-
by giving sources the incentive to begin reducing
their emissions now. Progressive flow control will
be eliminated as of 2009 with the start of the
CAIR program.
CAIR Benefits
In 2004, EPA officially designated 103 areas in the
eastern United States as 8-hour ozone "nonat-
tainment areas". Based on 2003 to 2005 air moni-
toring data, nearly 70 percent of them (68 areas
home to about 20 million people) now have air
quality that is better than the level of the stan-
dard. In 2005, however, there were still 31 areas
(home to about 80 million people) that are not
meeting the 8-hour ozone standard. CAIR will
help bring the remaining 31 areas in this part of
the eastern United States into attainment with
the ozone standard.
EPA projects that in 2015, CAIR, the NBP, and
other programs in the CAIR region will reduce
power industry ozone season NOX emissions by
about 40 percent and annual NOX emissions by
Figure 23: Ozone and Particle Pollution in the Future
Ozone and Fine Particle Nonattainment
Areas (April 2005)
Projected Nonattainment Areas in 2010
after Reductions from CAIR and
Existing Clean Air Act Programs
Projected Nonattainment Areas in 2015
after Reductions from CAIR and
Existing Clean Air Act Programs
^H Nonattainment areas for both 8-hour ozone and fine particle pollution
Q^ Nonattainment areas for fine particle pollution only
^| Nonattainment areas for 8-hour ozone only
Note: Projections concerning future levels of air pollution in specific geographic locations were estimated using the best
scientific models available. They are estimations, however, and should be characterized as such in any description. Actual
results may vary significantly if any of the factors that influence air quality differ from the assumed values used in the
projections shown here.
Source: EPA
Section 5 Future NOX Reductions and Ozone Improvements: Transition to the Clean Air Interstate Rule
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NOX Budget Trading Program: 2005 Program Compliance and Environmental Results
about 55 percent from 2005 levels. EPA also proj-
ects that CAIR and existing federal and state pro-
grams will reduce the number of 8-hour ozone
nonattainment areas in the East to six by 2015
(see Figure 23). The phase in of clean diesel
engines and low sulfur fuel requirements will fur-
ther reduce ozone and fine particle pollution
throughout the United States. Additionally, states
are working to identify and implement local con-
trols to move these remaining six areas into
attainment.
By 2015, the air quality improvements under
CAIR are projected to result in:
$85 to $100 billion in annual health benefits,
annually preventing 17,000 premature deaths,
millions of lost work and school days, and tens
of thousands of non-fatal heart attacks and
hospital admissions.
Nearly $2 billion in annual visibility benefits in
southeastern national parks, such as Great
Smoky and Shenandoah.
Significant regional reductions in sulfur and
nitrogen deposition, reducing the number of
acidic lakes and streams in the eastern United
States.
For more information, visit .
Section 5 Future NOX Reductions and Ozone Improvements: Transition to the Clean Air Interstate Rule
37
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NOX Budget Trading Program: 2005 Program Compliance and Environmental Results
Online Resources
General Information:
Office of Air and Radiation: www.epa.gov/oar
- Office of Atmospheric Programs: www.epa.gov/air/oap.html
- Office of Air Quality Planning and Standards: www.epa.gov/oar/oaqps
Mobile Sources: www.epa.gov/otaq
Cap and Trade and Related Programs: www.epa.gov/airmarkt
Air Trends: www.epa.gov/airtrends
NOX Control Programs:
Acid Rain Program: www.epa.gov/airmarkets/arp
Ozone Transport Commission (OTC) NOX Budget Program: www.epa.gov/airmarkets/otc
NOX Budget Trading Program (NBP): www.epa.gov/airmarkets/fednox
Clean Air Interstate Rule (CATR): www.epa.gov/cair
Ozone Information:
General Information: http://www.epa.gov/air/urbanair/ozone
USDA Forest Service, Forest Health Monitoring Program http://fhm.fs.fed.us/pubs
Emission Data and Monitoring Information:
National Emissions Inventory (NEI): www.epa.gov/ttn/chief/net
Clean Air Markets Data and Maps: http://cfpub.epa.gov/gdm
Ozone Monitoring Networks and Data:
Clean Air Status and Trends Network (CASTNET): www.epa.gov/castnet
Air Quality Systems (AQS): www.epa.gov/ttn/airs/airsaqs
Other Emission and Air Quality Resources:
General Information on EPA Air Quality Monitoring Networks: www.epa.gov/ttn/amtic
Clean Air Mapping and Analysis Program (CMAP): www.epa.gov/airmarkets/cmap
The Emissions and Generation Resources Integrated Database (eGRID):
www.epa.gov/cleanenergy/egrid
AIRNow: www.epa.gov/airnow
38 Online Resources
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