Over the past several months, there have been a number of developments in environmental law at the federal level, including in the area of air quality regulation. Although considerable attention has been given to certain high-profile federal developments, such as the Environmental Protection Agency’s first proposed greenhouse gas reporting rule and proposed climate change legislation, it is important not to overlook changes to regulatory requirements at the state level.

Indeed, one particular requirement in Pennsylvania has meaningful implications for owners and operators of certain combustion sources located in the five-county area of Bucks, Chester, Delaware, Montgomery and Philadelphia counties. Specifically, owners and operators of certain boilers, stationary combustion turbines and stationary internal combustion engines located in the five-county area are required, by Nov. 1, to surrender to the Pennsylvania Department of Environmental Protection, or PADEP, two nitrogen oxides, or NOx, emission allowances for each ton of NOx by which the combined actual emissions of the sources exceed the allowable emissions for the period from May 1 through Sept. 30. Although this requirement is not new, changes in federal law have altered the type of allowances that are available on the emissions trading market for this purpose. Specifically, NOx allowances created under the Clean Air Interstate Rule, or CAIR, must be used for compliance.

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