The Environmental Protection Agency has released its plan for an emissions trading program to cut smog in 22 Eastern states. The new program -- called "cap and trade"-- would allow the states to set a cap on emissions of nitrogen oxide (NOX) and enable firms to buy and sell market-based credits for NOX emissions, the main component of smog. The program is modeled after the trading system aiming to cut emissions of sulfur dioxide, which causes acid rain.
The new proposal, which soon will appear in the Federal Register, can be read on the EPA's Web site. A 45-day comment period will follow, including a May 29 public hearing.