Ozone Transport Commission

In 1994, the OTC adopted a Memorandum of Understanding[3] to adopt a regional emissions trading program for the purpose of reducing emissions of oxides of Nitrogen (NOX). This program dubbed the “OTC NOX Budget Program” set a cap for NOX emissions from nine states and the District of Columbia, which was ratcheted down in three phases, starting in 1995, 1999, and 2003, respectively. During this process a larger group of states in the Eastern United States and Environmental Protection Agency (EPA) began meeting as the Ozone Transport Assessment Group (OTAG). Their work wound up being adopted by EPA as a trading program NOX trading program that covered a larger geography (22 states plus the District of Columbia) called the "NOX SIP Call" and the third phase of the OTC NOX Budget Program was incorporated into that larger trading program. This early work by the OTC is consider the precursor to the modern emissions trading program (e.g., Cross-State Air Pollution Rule (CSAPR)) which reduced interstate ozone pollution in the Eastern United States[4]

The state of California updated its Low Emissions Vehicle (LEV) Program to require stricter emissions standards beginning in 1999, which was called LEV II.[5] Starting in 1994, the OTC petitioned EPA under Clean Air Act section 184 (c) to require that jurisdictions in the OTR adopt California's LEV program, which was allowed under Clean Air Act section 177. While the petition, was not accepted, an agreement was reached between EPA, Ozone Transport Commission (OTC) states, and the auto manufacturers to introduce new emission standards in the OTC states beginning with the 1999 model year, two years earlier than national, so called Tier 2, standards in alignment California's LEV program.

Another area that OTC has adopted policies to reduce ozone precursors (NOX and Volatile Organic Compounds (VOCs) is through model rule development. The OTC has initiated three phases of model rules, each of which culminated signing of a MOU between the member jurisdictions to adopt the model rules as state regulations. The 2001 generation of model rules called for the regulation of Consumer Products, Portable Fueling Containers, Architectural and Maintenance Coatings, Solvent Cleaning, Mobile Equipment Repair and Refinishing, and Additional NOX Controls for Industrial Boilers, Cement Kilns, Stationary Reciprocating Engines, and Stationary Combustion Engines.[6] The 2006 generation of model rules called for the regulation of Diesel Chip Reflash and Adhesive and Sealants and updates to the regulations of Consumer Products and Portable Fueling Container.[7] At the same time the OTC adopted emission limits for Asphalt Paving, Asphalt Production, Cement Kilns, Glass Furnaces, Industrial/Commercial/Insitutional (ICI) Boilers, and Regional Fuels to be implemented in conjunction with upwind regions.[8]