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Emissions trading programs are a long-established mechanism used by environmental regulators to reduce air pollution from the electric sector. In this series of posts, we explore how EPA has designed the Clean Power Plan to facilitate the buying and selling of credits representing emissions reductions at fossil-fuel fired power plants. Part 1 focused on rate-based trading. Part 2 explores how states can trade allowances representing tons of CO2 emissions.

Under EPA’s final Clean Power Plan, states must submit initial compliance plans or demonstrate progress toward that goal by September 2016. The Synapse Clean Power Plan Toolkit can help state agencies, public interest groups, and others zero in on cost-effective compliance plan options for any state or region affected by the rulemaking.