Trading of CAIR Allowances
EPA has received questions about the status of CAIR allowances allocated for 2009 and subsequent years.
Summary of Court actions
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.
Current status of CAIR programs
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. EPA informed the Court that development and finalization of a replacement rule could take about two years.