Maryland's efforts to develop regulations creating an air emissions offset trading program
Under the federal Clean Air Act's New Source Review program, many companies located in or planning to locate in areas that do not meet federal air quality standards or in the Northeast Ozone Transport Region (northern Virginia to Maine) must obtain emission reductions (called offsets) of volatile organic compounds and nitrogen oxides that are greater than the new emissions that will be released. This offset requirement allows growth in industry while protecting air quality against deterioration. Despite the federal offset requirement, a formal banking and trading program is not mandated by the Clean Air Act Amendments of 1990. Still, a mechanism is needed to ensure that emission reduction credits (ERCs) are available for sources to use to meet the offset requirement. Currently, Maryland does not have regulations covering the sale or transfer of ERCs from one facility to another. Maryland works with industry on a case-by-case basis to identify potential sources of ERCs and to assist in obtaining them. Then, the offset requirement and the ERCs used to meet the offsets are incorporated into individual permits using various permitting mechanisms. Desiring certainty and stability in the banking and trading process, Maryland's business community has pressed for regulations to formalize Maryland's procedures. Working over several years through a stakeholder process, Maryland has developed concepts for a trading program and a draft regulation. This paper describes Maryland's current case-by-case banking and trading procedure and traces efforts to develop a regulation to formalize the process. The paper discusses complex policy issues related to establishing a banking and trading program, describes the principal elements of Maryland's draft regulation, and summarizes elements of other states' emissions banking and trading programs.
- Research Organization:
- Maryland Dept. of the Environment, Baltimore, MD (US)
- OSTI ID:
- 20006547
- Report Number(s):
- CONF-990608-; TRN: IM200008%%154
- Resource Relation:
- Conference: Air and Waste 92nd Annual Meeting and Exhibition, St. Louis, MO (US), 06/20/1999--06/24/1999; Other Information: 1 CD-ROM. Operating Systems: Windows 3.1, '95, '98 and NT; Macintosh; and UNIX; PBD: 1999; Related Information: In: Air and Waste 92nd annual meeting and exhibition proceedings, [9500] pages.
- Country of Publication:
- United States
- Language:
- English
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