Epa emission allowance program

Affected sources are required to install systems that continuously monitor emissions of SO 2 , NO x , and other related pollutants in order to track progress and ensure compliance. Sources that reduce their emissions below the number of allowances they hold may trade allowances with other sources in their system, sell them to other sources on the open market or through EPA auctions, or bank them to cover emissions in future years.

A General Account may be opened by any person, company, or organization for the purpose of holding and transferring allowances. General Accounts are not tied to specific plants and are not considered compliance accounts. In addition to the compliance accounts established for them by the EPA, members of the regulated community may also open general accounts to hold or transfer allowances.

Any individual, corporation, or governing body may participate in the allowance market. Examples of participants include brokers, municipalities, environmental groups, and private citizens. Any party wishing to purchase allowances may open a General Account. Members of the regulated community may also open general accounts, in addition to the compliance accounts established for them by EPA to hold or transfer allowances.

Allowances can be allocated in several ways under the cap on emissions. These regulations are listed in 40 CFR Allowances can be bought directly from a company or individual who holds them. AMS accounts are the official records for allowance holdings and transfers used for compliance purposes.

Each allowance represents an authorization to emit one ton of emissions per allowance held in a compliance period. Anyone can transfer or purchase previously allocated allowances, including both regulated companies and members of the general public.

Allowances can be bought directly from a company, individual, or group who holds them, or through a broker. Except for the auction, EPA does not sell allowances. Brokers bring together parties that have allowances to buy and sell. Brokers are more appropriate for higher volume allowance transactions. The following list represents the brokers and exchanges that EPA knows about. The list is based on publicly available information and may not be complete.

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Please click here to see any active alerts. Emissions trading programs work by first setting an environmental goal: a national, or sometimes regional, limit on the overall amount of pollution that sources are allowed to emit into the environment. This environmental goal is a critical part of an emissions trading program.

Affected sources, such as power plants, that are included in an emissions trading program receive allowances that authorize a certain amount of pollution.