Michigan`s air emission trading program

Conference · Wed Dec 31 04:00:00 EST 1997

OSTI ID:353542

Russette, T M; VanKolken, A M

Michigan`s Emission Trading Program took effect on March 16, 1996 after two years of rule development by the Michigan Department of Environmental Quality, Air Quality Division and affected stakeholders. This program is based on the open market trading model and has been designed to (1) be consistent with existing federal and state rules and regulations, (2) integrate with existing air programs such as the permit program, and (3) address the needs of Michigan`s regulated community. Michigan`s Air Quality Division, along with other interested parties, initiated this program as part of market-based approaches to improve air quality through the reduction of criteria pollutants (except ozone) and volatile organic compounds. The Emission Trading rules offer potential benefits for Michigan companies that include increased operational flexibility, lower compliance costs, and/or money generated from the sale of the emission reduction credits. The environment also benefits from this program because the rules require that 10 percent of all registered emission reductions must be permanently retired as an air quality benefit. The emission trading program provides new opportunities for consulting firms to assist companies by identifying acceptable ways to generate and use emission reduction credits. Air pollution control companies may also see new opportunities by designing and installing control equipment in order to reduce air emissions. The role of consultants and equipment companies may expand to that of a broker selling and/or buying emission reduction credits on the Emission Trading Registry. Much has been learned since the conception of the air emission trading program. This paper will discuss how the program works in practice compared to what was envisioned in theory and the potential benefits from Michigan`s Emission Trading Program.

• OSTI ID: 353542
• Report Number(s): CONF-970677--
• Country of Publication: United States
• Language: English

Related Subjects

54 ENVIRONMENTAL SCIENCES
AIR POLLUTION
AIR POLLUTION ABATEMENT
AIR POLLUTION CONTROL
COST
EMISSION
LICENSES
MICHIGAN
TRADE