WHAT IS
PROJECT XL?
SUMMARY OF
THE PROJECT
SUPERIOR
ENVIRONMENTAL
PERFORMANCE
United States
Environmental Protection
Agency
Office of the
Administrator
[Mail Code 1802]
EPA-100-F-00-030
December 2000
(http://www.epa.gov)
Project XL: Metropolitan
Chicago Regional Air Quality
and Economic Development
Strategy
POL
ECONOM
INNOVAT
CY
CS
ON
Project XL, which stands for excellence and Leadership, is a national
initiative that tests innovative ways of achieving better and more cost-effective
public health and environmental protection. The information and lessons
learned from Project XL are being used to assist the U.S. Environmental
Protection Agency (EPA) in redesigning its current regulatory and policy-
setting approaches. Project XL encourages testing of cleaner, cheaper, and
smarter ways to attain environmental results superior to those achieved under
current regulations and policies, in conjunction with greater accountability to
stakeholders. It is vital that each project tests new ideas with the potential for
wide application and broad environmental benefits. As of December 2000,
fifty pilot experiments are being implemented and several additional projects
are in various stages of development.
The Clean Air Act requires a new major source of emissions (such as a
factory) which locates in a nonattainment area to purchase offsetting
emissions. Offsetting emissions are credits created by another business that
reduces its emissions. Currently, in the Chicago nonattainment area, a
business must purchase 1.3 tons of offsets for each 1 ton of emissions it will
generate. Under this project, businesses that locate in specially designated
development zones will be given an alternative method of complying with the
offset requirement. Chicago will create a bank of emissions reduction credits
through a variety of activities. Businesses locating in development zones can
draw on the bank and thus avoid the expense of having to purchase
emissions offsets elsewhere. Emissions reductions will be quantified under a
structure approved by the U.S. EPA and Illinois EPA. In addition to providing
economic benefits for businesses, this project will help rejuvenate city
neighborhoods and reduce sprawl with its associated traffic and air pollution.
The Metropolitan Chicago Regional Air Quality and Economic Development
Strategy, EPAs 50th XL agreement, was signed on December 8,2000.
Chicago will permanently retire 40 percent of the emissions reductions that it
banks. The remaining 60% will be available for businesses that locate in
specified development zones. JThis project is designed to deliver superior
environmental performance while allowing flexibility in satisfying regulatory
offset requirements. Environmental benefits accrue in a number of ways.
" Before emissions reductions may be used for this project, the state must
demonstrate that the designated area meets the one-hour ozone
standard.
" Because 40 percent of the emissions reductions generated will be
retired, the emissions reduced under this project will be greater than the
1.3 to one reduction currently required.
" Because the city will create incentives to generate emissions reductions,
an increased number of these activities will likely be funded and carried
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FLEXIBILITY
STAKEHOLDER
INVOLVEMENT
APPROACHES
TO BE TESTED
CONTACTS
out.
" Participating municipalities in the Chicago metropolitan area will achieve
real emissions reductions from mobile and area sources.
Businesses are given flexibility to use alternative methods of complying with
the offset requirement, while Chicago is given the flexibility to use the growth
allowance to entice sources to locate in special economic development zones.
A formal stakeholder outreach process has been developed by the Chicago
Department of Environment. Outreach has included public meetings at key
points throughout the project. This project will be discussed in meetings of the
Campaigns for Clean Air and Development, where representatives from
communities, local governments, businesses, and environmental groups will
be given an opportunity to comment on the project. There also will be
continuing opportunities for public comment and involvement at key points as
the project is carried out.
*D Does allowing a municipality to quantify and use emissions reductions from
a variety of activities as an emissions allowance incentive encourage
businesses to locate in targeted urbanized areas?
*D Does allowing a municipality to use a percentage of area emissions
reductions as a growth allowance incentive increase emissions reduction
programs and decrease area emissions?
Regional Contact:
EPA/XL HQ:
Project Sponsor:
Steve Marquardt
Tim Torma
Alexandra Holt
312-353-3214
202-260-5180
312-744-3172
FOR ELECTRONIC
INFORMATION
More information about this XL Project, or the Project XL Program, is available
on the Internet at http://www.epa.gov/proiectxl under Information on Specific
XL Projects, or via Project XLs Information Line at
(202) 260-5754.
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