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Incorporating Wind in Cap and Trade Programs

There are various methods of allocating allowances to renewable energy sources under cap and trade programs, such as renewable energy set asides and output-based approaches. Background materials and presentations from the January 12, 2006 Webcast below, provide information on why it is important to include wind and other renewables in cap and trade programs and how best to incorporate them.

Implications of Carbon Regulation for Green Power Markets

Bird, L.; Holt, E.; Carroll, G. National Renewable Energy Laboratory, April 2007.

January 12, 2006 Webcast: Incorporating Renewable Energy under the Clean Air Interstate Rule (CAIR)

Co-Sponsors

American Wind Energy Association (AWEA)

U.S. DOE/NREL Wind Powering America

STAPPA/ALAPCO

More Information

Background on the Clean Air Interstate Rule

Issued by the U.S. EPA on March 10, 2005, the Clean Air Interstate Rule (CAIR) calls for significant reductions in emissions of sulfur dioxide (SO2) and nitrogen oxides (NOx) in 28 eastern states and the District of Columbia. States must achieve the required emission reductions using one of two compliance options: 1) meet the state's emission budget by requiring power plants to participate in an EPA-administered interstate cap and trade system, or 2) meet an individual state emissions budget through measures of the state's choosing. States must submit State Implementation Plans (SIPs) for CAIR by the end of 2006. For additional information, please see the U.S. Environmental Protection Agency's CAIR Web site.