The Origin and Demise of New Jersey's Open Market Emissions Trading Program

摘要

On August 2,1996, the New Jersey Department of En-vironmental Protection (NJDEP) promulgated rules governing its Open Market Emissions Trading (OMET) program. With a goal to provide industry with a greater degree of flexibility in meeting federal air compliance directives and simultaneously support the state's progress toward the attainment of federal air standards, this program has now been terminated following scrutiny from the U.S. Environmental Protection Agency (EPA), environmental groups, and a new NJDEP administration. This Article discusses the basis for this scrutiny and other program flaws discovered through interviews with, and public comments from, NJDEP and EPA officials, industry representatives, environmental advocates, and former members of the New Jersey State Legislature. The results of this work are also placed against the political background that gave rise to open market trading in New Jersey, and may have hindered the program's success. Finally, recommendations are offered for future open market trading (OMT) programs that may help to prevent some of the shortcomings witnessed in New Jersey's initiative.