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Cap & Trade Program
NOx Budget Program
The Ozone Transport
Commission (OTC) was established under the Clean Air Act Amendments
of 1990 to to coordinate the regional development of control plans
for ground-level ozone in the Northeast and Mid-Atlantic States.
A three phase program was established starting withthe implementation
of "reasonably available control technology" (RACT) for
many existing pollution sources in certain nonattainment areas and
throughout the OTR. Phase II began with a 1994 Memorandum of Understanding
between the states of the Ozone Transport Region to create a Cap and Trade program within the region which would become the NOx Budget Program.
New Jersey adopted its NOx Budget Program, N.J.A.C.
7:27-31, in 1998, which was effective for the May through September
ozone season starting in 1999. A base emission budget of 17,340
tons of NOx was established, which was an approximately
65% reduction from 1990 emissions. Phase III, known as NOx SIP Call began in 2003 with a reduction of the base emission
budget to 8,200 tons. Phase III will continue through the ozone
season of 2008, at which point it will be superceded by the Clean
Air Interstate Rule (CAIR).
The Bureau of Air Quality Planning is the principal unit within
the Department for the coordination of the NOx Budget
Program. This rules applies to all fossil fuel fired indirect heat
exchangers with a maximum rated heat input capacity of at least
250 MMBtu per hour; and all fossil fuel fired electric generating
units with a rated output of at least 15 MW.
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