ISSUES AND ANSWERS

<<Back to ISSUES AND ANSWERS main page   Clean Air Interstate Rule (CAIR), Mercury Rule (CAMR) Clean Air Interstate Rule (CAIR) and Clean Air Mercury Rule (CAMR)are new Federal requirements that regulate emissions of SO2, NOx, and Mercury through a cap and trade program. CAIR and CAMR are new Federal requirements that regulate emissions of SO2, NOx, and Mercury through a cap and trade program. A cap and trade program is one where the state sets a “cap” on the total emissions of each pollutant, and then individual sources are allocated a certain amount of the overall budget with which they must comply. Sources that cannot comply with their portion of the emissions budget are allowed to “trade” or buy emissions from other sources in the state that have credits. In this manner, there is economic incentive to install controls for these pollutants, and in some cases, to over-control emissions in order to be able to sell emission credits to other companies. MDEQ is required to write a state-specific rule for CAIR and CAMR to implement the federal requirements and has developed draft rules that have not yet been finalized. The draft rules would institute a state-wide budget maximum that caps the total emissions of SO2, NOx, and Mercury for all electric generating units in Michigan. Some space in the state emissions budget is proposed to be left for new sources of emissions that could be constructed in the future, such as the proposed power plant in Escanaba; however, the amount in the state emissions budget will be quite small and it is uncertain at this time what other new sources in the state may want to take advantage of the set-aside emission allowances. Further information regarding CAIR and CAMR can be found here: CAIR CAMR