On March 15, 2023, the Environmental Protection Agency (EPA) released its final Good Neighbor Plan to cut nitrogen oxide (NOx) pollution from power plants and other industrial facilities in 23 states.[1] [2] The Good Neighbor Plan ensures that these states meet the Clean Air Act’s “Good Neighbor” requirements by reducing pollution that significantly contributes to problems attaining and maintaining EPA’s health-based air quality standard for ground-level ozone, known as EPA’s 2015 Ozone National Ambient Air Quality Standards (NAAQS), in downwind states. The rule limits emissions of NOx during the summertime “ozone season” through a NOx allowance trading program for fossil fuel-fired power plants in 22 states and NOx emissions standards for certain sources within nine industry categories in 20 states.

Under the new rule, power plant owners in these states (except California), will face tighter NOx emissions requirements starting in the 2023 ozone season. Power plants without NOx emissions reduction equipment will have to install the equipment, and power plants with the equipment will be required to run it all the time during the ozone season to protect downwind areas. More reductions will be phased in starting in 2024 and reflect emissions levels that could be achieved through the installation of new emissions controls. In addition, beginning in the 2026 ozone season, the EPA is setting enforceable NOx emissions control requirements for certain sources at new and existing industrial facilities in 20 states. This plan will reduce ozone season NOx pollution by about 70,000 tons from power plants and industrial facilities in 2026.

[1] https://www.epa.gov/newsreleases/epa-announces-final-good-neighbor-plan-cut-harmful-smog-protecting-health-millions

[2] Alabama, Arkansas, California, Illinois, Indiana, Kentucky, Louisiana, Maryland, Michigan, Minnesota, Mississippi, Missouri, Nevada, New York, New Jersey, Oklahoma, Ohio, Pennsylvania, Texas, Utah, Virginia, West Virginia, Wisconsin