NOx Budget Trading Program
The federal NOx Budget program limits the quantity of NOx emissions during the ozone season (May 1-September 30) each year. Each state is allowed a specific tonnage of emissions that may be emitted by budget sources during the ozone season. This is known as the State NOx Budget. State regulations assign specific portions of each State NOx Budget to individual sources.
The NOx budget program reduces NOx emissions from large stationary boilers that use fossil fuel and whose maximum rated heat input capacity is at least 250 million Btu/hour. These reductions are accomplished through a region-wide emissions cap and trade program based on the distribution of allowances for NOx emissions under the budget program.
To create the NOx budget program, the Department promulgated 6 NYCRR Part 204 (NOx Budget Trading Program), and amended Part 200, General Provisions; Subpart 227-1, Stationary Combustion Installations; Subpart 227-2, Reasonably Available Control Technology (RACT) for Oxides of Nitrogen; and Subpart 227-3, Pre 2003 Nitrogen Oxides Emissions Budget and Allocation Program.