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NOx Budget Program 2007 Progress Report

Published December 2008

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Appendix D is an Excel spreadsheet. Open it with your installed version of Excel or download a free copy of the Microsoft Excel viewer

The NOx Budget Trading Program (NBP) is a market-based cap and trade program created to reduce the regional transport of emissions of nitrogen oxides (NOx) from power plants and other large combustion sources that contribute to ozone nonattainment in the eastern United States. NOx is a major precursor to the formation of ground-level ozone, a pervasive air pollution problem - also known as "smog" - in many areas in the East. 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. This report evaluates progress under the NBP in 2007 by examining emission reductions, reviewing compliance results and market activity, and comparing changes in emissions to changes in ozone concentrations.


Since the program began in 2003, the NBP has successfully reduced ozone season NOx emissions throughout the region. In 2007, NBP ozone season NOx emissions totaled approximately 506,000 tons and were:


Through a wide range of pollution control strategies, sources achieved over 99 percent compliance:

Allowance Market

There was an active allowance market in 2007:


Ground-level ozone has decreased since implementation of the NBP in 2003:

Nonattainment Areas

Based on 2005-2007 air monitoring data, ozone air quality improved in almost all of the 104 areas in the eastern United States designated to be in nonattainment for the 1997 8-hour National Ambient Air Quality Standard (NAAQS) (see map).

Clean Air Interstate Rule (CAIR)

Federal and state efforts to reduce ozone are ongoing in the East.

Changes in 8-Hour Ozone Nonattainment Areas in the East, 2001-2003 (Original Designations) Versus 2005-2007   Ozone Season NOx Emissions from All NBP Sources
This picture of the Eastern United States shows changes in the status of 8-hour ozone nonattainment areas, comparing data from 2001-2003 (original designations made before the NBP began) with 2005-2007 (under the NBP).  The map shows that 95 percent of nonattainment areas have experienced improvements in ozone, with 64 percent of these areas now below the ozone standard.   This bar chart shows the ozone season NOx emissions from all NBP sources from 1990 to 2007.  Emissions in 1990 were 1,860,000 tons and in 2007 were 506,000 tons.

Please see the report for more detailed information or higher resolution images



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