News Releases - 1998

Illinois EPA Delays Air Emissions Trading Program in Chicago Metro Area

Springfield, Ill. -- Because of unanticipated delays which are occurring nationwide in issuing federal Clear Air Act Permit Program (CAAPP) permits, the start of a new trading system to achieve cleaner air in the Chicago metro area will be delayed for a year.

The Emission Reduction Market System (ERMS) is part of Illinois' strategy to reduce emissions of volatile organic materials (VOM) that contribute to the formation of ground-level ozone or smog. About 200 major stationary VOM sources in the metro area will first receive "trading units" starting with the year 2000 ozone season (May 1 through September 30). The startup had previously been planned for the 1999 season.

The affected sources will generally be required to achieve a 12 percent reduction from their baseline VOM emissions levels. Each source will be given an allotment of trading units annually that reflects the reduced levels of emissions. Sources whose seasonal VOM emissions are below their allotments will have surplus trading units that can be sold to other sources that choose not to further control their emissions under the ERMS. This provides an incentive for sources to find the less costly and more effective ways to further control VOM emissions including new processes and materials.

Under the ERMS, the sources that do further control VOM can benefit from the sale of surplus trading units. The sources that purchase the units benefit by being able to take advantage of control measures at other sources that are less costly than doing further controls of their own. The environment still benefits because of the overall reduction in VOM emissions needed to reduce smog. In addition, the ERMS does not replace any other programs that require specific measures to control VOM emissions from particular classes of sources and types of equipment.

However, before trading can effectively begin, most of the affected major sources must have obtained CAAPP permits. As in other states, the issuing of federally-mandated CAAPP permits in Illinois is taking longer than anticipated because of the complexity involved and changing guidance from the U.S. Environmental Protection Agency. So far only a handful of the affected sources for the ERMS have been issued CAAPP permits.

Illinois EPA will issue the majority of the permits for affected sources within the next 12 months and first distribute trading units in late 1999. As a result, affected sources will have to hold trading units and reconcile their VOM emissions beginning with the year 2000 ozone season.

Specific record keeping and reporting for seasonal VOM emissions is still required starting this year, however. This will document reductions achieved by affected sources in preparing for the ERMS. Illinois EPA is also urging sources to continue with plans to reduce VOM emissions for 1999.