Federal Acid Rain Program (ARP)

Launched in 1995, the Federal Acid Rain Program was the first large-scale emissions trading program in the world.  Administered by the US EPA, the ARP regulates emissions of sulfur dioxide (SO₂) mostly from coal-fired power plants.  Its initial goal was to reduce annual SO₂ emissions to 50% of 1980 levels by 2010.  SO₂ emissions have actually decreased from about 18 million tons per year to below 1 million tons per year (~95% reduction).  Facilities receive a free allocation of allowances which they may trade with other facilities. 

In 2024, 1,079 power plants reported emissions in the ARP.  This includes facilities in all 48 of the contiguous United States.  Facilities must have allowances equal to or greater than their calendar year emissions by March 1 of the following year.  Failure to comply imposes an automatic penalty in the form of a fine per ton of the shortfall and a requirement to surrender additional allowances in the future to offset the shortfall. 

Although trades are infrequent, Emissions Experts provides Acid Rain Program (ARP) allowances.

Federal Acid Rain Program – Includes all 48 contiguous United States