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Announcements

August 21, 2012 - The U.S.

Court of Appeals for the D.C.

Circuit issued its ruling on

CSAPR.

January 14, 2012 - A new

Bulletins page has been

added to the CSAPR site for

updates on CSAPR and the

continuing implementation of

CAIR.

January 10, 2012 - EPA

restored 2012 CAIR

allowances to accounts.

Additional allocations of 2012

allowances will be done as

soon as the allocation files

are submitted to EPA by the

states

Older Updates

States Covered by CAIR

You are here: EPA Home Air & Radiation Clean Air Markets Programs and Regulations

Clean Air Interstate Rule (CAIR)

Clean Air Interstate Rule (CAIR)

The U.S. Court of Appeals for the D.C. Circuit issued its ruling on CSAPR. EPA is reviewing the court

decision. CAIR remains in place.

On March 10, 2005, EPA issued the Clean Air Interstate Rule

(CAIR). This rule provides states with a solution to the problem of

power plant pollution that drifts from one state to another. CAIR

covers 27 eastern states and the District of Columbia. The rule

uses a cap and trade system to reduce the target pollutants—

sulfur dioxide (SO2) and nitrogen oxides (NOx)—by 70 percent.

States must achieve the required emission reductions using one of

two compliance options: (1) meet the state’s emission budget by

requiring power plants to participate in an EPA-administered

interstate cap and trade system that caps emissions in two

stages, or (2) meet an individual state emissions budget through

measures of the state’s choosing.

See also:

Notice of Data Availability (NODA) -- 2010 CAIR NOx Annual

Trading Program New Unit Set-aside

Notice of Data Availability (NODA) -- 2010 CAIR FIP Ozone

Season New Unit Set-aside

Table of Ozone Season NOx Emissions, Heat Input: 2008

vs. 2009 (Excel, 72 KB)

Notice of Data Availability (NODA) -- CAIR FIP CSP

Allocations

CAIR Implementation Training Workshops

Frequent Questions

Reports and Analyses

Additional Resources

Notice of Data Availability (NODA) -- NOx CAIR FIP Allocations

Part 75 Certification Administrative Processes for CAIR NOx Units (PDF 6 pp. 146 KB)

Questions and Answers Concerning Non-EGUs Transitioning from the NOx Budget Trading

Program to the CAIR NOx Program (PDF 3 pp. 18 KB)

Monitor Certification Procedures for CAIR NOx Units (PDF 12 pp. 165 KB)

EPA Rulemaking Actions on State's CAIR SIP Submissions

CAIR Applicability Determinations

CAIR Background Information

Where to find more information:

Clean Air Markets

http://www.epa.gov/cair/

Last updated on Tuesday, August 21, 2012
10/3/12

www.epa.gov /cair/ 2/2

Where You Live - Descriptions of the health and

environmental benefits of the Clean Air Interstate

Rule in each of the 27 states in the Eastern US and

the District of Columbia.

Basic Information - Summary of the Clean Air

Interstate Rule as well as a summary of the design

of the program and the benefits it would provide.

Regulatory Actions - Links to proposed and final

rules, fact sheets, and other rulemaking

documents.

Charts and Tables - A collection of printable

charts, tables, and graphics demonstrating the

health and environmental benefits of the Clean Air

Interstate Rule.

Technical Information - Technical support

information and links to related information.

Older Announcements:

December 23, 2008 - The D.C. Circuit remanded without vacature EPA's Clean Air

Interstate Rule. Read the court decision (PDF 4pp, 22k)

December 23, 2008 - No public hearing was requested and none will be held for EPA's

Rulemaking To Reaffirm the Promulgation of Revisions of the Acid Rain Program Rules.

November 17, 2008 - The United States filed a reply in support of its petition for

rehearing in the Clean Air Interstate Rule case. Read the Reply (PDF 10pp, 390k) |

Attachment 1 (PDF 23pp, 137k) | Attachment 2 (PDF 12pp, 165k)

September 24, 2008 - The United States filed a petition for rehearing in the Clean Air

Interstate Rule case. Read the Petition (PDF 23pp, 1058k) | Declarations by Brian McLean

and William Harnett (PDF 11pp, 454k)

August 23, 2008 - Analysis of Potential Quick Fix Legislative Changes to Address Court

Decision (PPT 12pp, 985k)

July 29, 2008 - Brian Mclean's Testimony for the Senate Committee on Environment and

Public Works: EPA's preliminary assessment of the potential affect of the recent DC Circuit

Court Decision on CAIR and EPA's programs (PDF, 15 pp. 57 KB) | Supplemental Attachments

(PDF, 5 pp. 877 KB)

July 11, 2008 - The D.C. Circuit vacated EPA's Clean Air Interstate Rule. EPA is reviewing

the Court's decisions and evaluating its impacts. Read the Court's Opinion (PDF) (60pp,

221k)
10/3/12 EPA: Clean Air Interstate Rule - Basic Inf ormation

www.epa.gov /cair/basic.html 1/4

You are here: EPA Home Air & Radiation Clean Air Interstate Rule Basic Information

Basic Information

Basic Facts on CAIR

Cap and Trade Basics

Why Control SO2 and NOx?

CAIR Timeline

CAIR Nonattainment Maps

EPA Press Release

Basic Facts on CAIR

Citing significant health and clean air benefits, EPA finalized the Clean Air Interstate Rule (CAIR)

on March 10, 2005. This rule will result in the deepest cuts in sulfur dioxide (SO2) and nitrogen

oxides (NOx) in more that a decade.

The December 23, 2008 ruling leaves CAIR and the CAIR FIPs -- including the CAIR trading

programs -- in place until EPA issues a new rule to replace CAIR in accordance with the

July 11, 2008 decision. Read the court decision (PDF) (4pp, 22k). EPA informed the Court

that development and finalization of a replacement rule could take about two years.

The U.S. Court of Appeals for the D.C. Circuit has ruled on petitions for review of the

Clean Air Interstate Rule (CAIR) and CAIR Federal Implementation Plans (FIPs), including

their provisions establishing the CAIR NOX annual and ozone season and SO2 trading

programs. On July 11, 2008, the Court issued an opinion vacating and remanding these

rules; however, parties to the litigation requested rehearing of aspects of the Court's

decision, including the vacatur of the rules. On December 23, 2008, the Court granted

rehearing only to the extent that it remanded the rules to EPA without vacating them.

On March 10, 2005, the Environmental Protection Agency (EPA) announced the Clean Air

Interstate Rule (CAIR), a rule that will achieve the largest reduction in air pollution in more

than a decade. This action, called the "Interstate Air Quality Rule" when it was proposed

in January 2004, offers steep and sustained reductions in air pollution as well as dramatic

health benefits at more than 25 times greater than the cost by 2015.

Through the use of the proven cap-and-trade approach, CAIR achieves substantial

reductions of sulfur dioxide (SO2) and nitrogen oxides (NOx) emissions and is a powerful

component of the Administration's plan to help over 450 counties in the eastern U.S. meet

EPA’s protective air quality standards for ozone or fine particles.

SO2 and NOx contribute to the formation of fine particles and NOx contributes to the

formation of ground-level ozone. Fine particles and ozone are associated with thousands

of premature deaths and illnesses each year. Additionally, these pollutants reduce visibility

and damage sensitive ecosystems.

By the year 2015, the Clean Air Interstate Rule will result in:

-- $85 to $100 billion in annual health benefits, annually preventing 17,000 premature

deaths, millions of lost work and school days, and tens of thousands of non-fatal heart

attacks and hospital admissions.

-- nearly $2 billion in annual visibility benefits in southeastern national parks, such as

Great Smoky and Shenandoah.

-- significant regional reductions in sulfur and nitrogen deposition, reducing the number of

acidic lakes and streams in the eastern U.S.

CAIR covers 27 eastern states and the District of Columbia. In this rule, EPA finds that

SO2 and NOx emissions from 25 states and the District of Columbia contribute to

Clean Air Interstate Rule

http://www.epa.gov/cair/basic.html

Last updated on Tuesday, July 31, 2012
10/3/12 EPA: Clean Air Interstate Rule - Basic Inf ormation

www.epa.gov /cair/basic.html 2/4

SO2 and NOx emissions from 25 states and the District of Columbia contribute to

unhealthy levels of fine particles in downwind states. In addition, NOx emissions in 25

eastern states and the District of Columbia contribute to unhealthy levels of 8-hour ozone

in other downwind states. (See map on the Where You Live page for information on

affected states)

Based on an assessment of the emissions contributing to interstate transport of air pollution and

available control measures, EPA has determined that achieving required reductions in the

identified states by controlling emissions from power plants is highly cost effective.

States must achieve the required emission reductions using one of two compliance

options: 1) meet the state’s emission budget by requiring power plants to participate in an

EPA-administered interstate cap and trade system that caps emissions in two stages, or

2) meet an individual state emissions budget through measures of the state’s choosing.

CAIR provides a Federal framework requiring states to reduce emissions of SO2 and NOx.

EPA anticipates that states will achieve this primarily by reducing emissions from the

power generation sector. These reductions will be substantial and cost-effective, so in

many areas, the reductions are large enough to meet the air quality standards. The Clean

Air Act requires that states meet the new national, health-based air quality standards for

ozone and PM2.5 standards by requiring reductions from many types of sources. Some

areas may need to take additional local actions. CAIR reductions will lessen the need for

additional local controls.

This final rule provides cleaner air while allowing for continued economic growth. By

enabling states to address air pollutants from power plants in a cost effective fashion,

this rule will protect public health and the environment without interfering with the steady

flow of affordable energy for American consumers and businesses.

If states choose to meet their emissions reductions requirements by controlling power

plant emissions through an interstate cap and trade program, EPA’s modeling shows that:

In 2010, CAIR will reduce SO2 emissions by 4.3 million tons -- 45% lower than 2003

levels, across states covered by the rule. By 2015, CAIR will reduce SO2 emissions

by 5.4 million tons, or 57%, from 2003 levels in these states. At full implementation,

CAIR will reduce power plant SO2 emissions in affected states to just 2.5 million

tons, 73% below 2003 emissions levels.

CAIR also will achieve significant NOx reductions across states covered by the rule.

In 2009, CAIR will reduce NOx emissions by 1.7 million tons or 53% from 2003 levels.

In 2015, CAIR will reduce power plant NOx emissions by 2 million tons, achieving a

regional emissions level of 1.3 million tons, a 61% reduction from 2003 levels.

In 1990, national SO2 emissions from power plants were 15.7 million tons compared

to 3.5 million tons that will be achieved with CAIR. In 1990, national NOx emissions

from power plants were 6.7 million tons, compared to 2.2 million tons that will be

achieved with CAIR.

In upcoming but closely related action, EPA will impose the first ever federally-mandated

requirements that coal-fired electric utilities reduce their emissions of mercury. Together

the Clean Air Mercury Rule and the Clean Air Interstate Rule create a multi-pollutant

strategy to reduce emissions throughout the United States.

The Bush Administration continues to believe that the President’s Clear Skies legislation is

a more efficient, effective, long-term mechanism to achieve large-scale national

reductions. Clear Skies legislation applies nationwide and is modeled on the highly

successful Acid Rain Program. The Agency remains committed to working with Congress to

pass legislation.

Cap and Trade Basics

The Clean Air Interstate Rule establishes a cap-and-trade system for SO2 and NOx based

on EPA's proven Acid Rain Program. The Acid Rain Program has produced remarkable and

demonstrable results, reducing SO2 emissions faster and cheaper than anticipated, and

resulting in wide-ranging environmental improvements.
10/3/12 EPA: Clean Air Interstate Rule - Basic Inf ormation

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EPA already allocated emission "allowances" for SO2 to sources subject to the Acid Rain

Program. These allowances will be used in the CAIR model SO2 trading program. For the

model NOx trading programs, EPA will provide emission "allowances" for NOx to each state,

according to the state budget. The states will allocate those allowances to sources (or

other entities), which can trade them. As a result, sources are able to choose from many

compliance alternatives, including: installing pollution control equipment; switching fuels;

or buying excess allowances from other sources that have reduced their emissions.

Because each source must hold sufficient allowances to cover its emissions each year,

the limited number of allowances available ensures required reductions are achieved.

The mandatory emission caps, stringent emissions monitoring and reporting requirements

with significant automatic penalties for noncompliance, ensure that human health and

environmental goals are achieved and sustained.

The flexibility of allowance trading creates financial incentives for electricity generators to

look for new and low-cost ways to reduce emissions and improve the effectiveness of

pollution control equipment.

Why Control SO2 and NOx?

Why EPA is Addressing Emissions of SO2 and NOx

EPA established more protective fine particle and 8-hour ozone national air quality

standards in 1997. Litigation and the need to establish a nationwide air monitoring system

for fine particles delayed the implementation of these standards, but implementation is

now moving forward. Areas not meeting these standards, known as “nonattainment”

areas, were designated in 2004. These state and local governments are moving forward

with plans to protect public health by attaining the standards as quickly as possible.

Sulfur dioxide (SO2) and nitrogen oxides (NOx) contribute to the formation of fine particles

(PM) and NOx contributes to the formation of ground-level ozone.

Many sources contribute to levels of fine particle pollution and ozone that exceed national

air quality standards. Some of these pollutants may originate hundreds or thousands of

miles from the areas where violations are detected. The Clean Air Act's "good neighbor

provisions" require states to eliminate emissions that substantially contribute to dirty air in

downwind states.

Under the Clean Air Act, states are required to submit plans to EPA within three years

after the Agency revises a national air quality standard. Among other requirements, these

plans must limit emissions in states that contribute significantly to unhealthy air

downwind.

Although states have not yet developed plans for meeting the national air quality

standards for fine particle pollution and 8-hour ozone, EPA's analyses show that even

substantial local emission controls still would leave many areas in the eastern US with

unhealthy air in 2010.

By limiting emissions of SO2 and NOx on a regional scale, the Clean Air Interstate Rule will

help all areas in the eastern US achieve healthier air quality at reduced costs than a

strategy that relies solely on local controls.

CAIR Timeline

Promulgate CAIR Rule 2005

State Implementation Plans Due 2006

Phase I Cap in Place for NOx 2009

Phase I Cap in Place for SO2 2010
10/3/12 EPA: Clean Air Interstate Rule - Basic Inf ormation

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Phase II Cap in Place for NOx and SO2 2015