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NOx Budget Trading Program/NOx SIP Call, 2003-2008

In 2003, EPA began to administer the NOx Budget Trading Program under the NOx State Implementation Plan, also known as the “NOx SIP Call.” The NOx Budget Trading Program (NBP) was a market-based cap and trade program created to reduce emissions of nitrogen oxides (NOx) from power plants and other large combustion sources in the eastern United States. NOx is a prime ingredient in the formation of ground-level ozone (smog), a pervasive air pollution problem in many areas of the eastern United States. The NBP was designed to reduce NOx emissions during the warm summer months, referred to as the ozone season, when ground-level ozone concentrations are highest.

 


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