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State of New Jersey-Department of Environmental Protection-Bureau of Air Quality Planning
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Cap & Trade Programs

NOx Programs

The Bureau of Air Quality Planning is the principal unit within the Department for the coordination of the NOx cap and trade programs.


The USEPA began the implementation of the Cross-State Air Pollution Rule (CSAPR) on January 1, 2015. There is no counterpart state rule at this time.
Information can be obtained at the following link:


New Jersey's version of the Clean Air Interstate Rule was adopted in 2007, in compliance with Federal regulations, to be effective on January 1, 2009. Applying to all electric generating units with a rated output in excess of 25 MW, it established both an Ozone Season program with a cap of 6,654 tons of NOX, and a parallel Annual program with a cap of 12,670 tons. In 2008, CAIR was first vacated in entirety by the U.S. Court of Appeals for the District of Columbia Circuit in July, which then in December reversed its vacatur citing that the CAIR rule as previously written would remain in place until such time as the USEPA revises the rule, as per the instructions of the Court’s order in July.

The CAIR program came to an end on December 31, 2014.

NOx Budget Programs

These rules applied 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.

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 with the 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 continued through the ozone season of 2008, at which point it was superceded by the Clean Air Interstate Rule (CAIR).

New Jersey's NOx Allocations:

Information on allocations and emissions under all programs can be obtained from the USEPA’s Air Markets Program Data tool at:

Acid Rain (SO2) Program

The Acid Rain Program is maintained by the USEPA: USEPA Acid Rain