The Regional Clean Air Incentives Market (RECLAIM) is specific to portions of Southern California and was initially implemented on January 1, 1994. It requires businesses and industries to reduce the amount of SO2 and NOx they are emitting each year. This market is noteworthy because it represents the first time a cap and trade program was used to effect emission reductions and has several marked differences with many of the other emission allowance markets. This is the only emissions market in which allowances are actually referred to as "credits".
The program is managed by the South Coast Air Quality Management District (SCAQMD) and is targeted at sources that emit greater than or equal to four tons of NOx per year. Under this program, participants must surrender one credit for every one-pound of NOx emitted from January 1 through December 31. Participants receive annual allocations of credits from SCAQMD based upon past peak production and existing rules and control measures. This program is unique in that it does not allow banking of credits.
In January of 2005 changes to the RECLAIM program were made. The changes resulted in reductions of 7.7 tons per day of NOx from all RECLAM facilities by 2011. The implementation of these reductions will be done in phases, 4tons per day in 2007 and .925 tons per day in each of the four year 2008-2011.
California’s local air districts websites can be viewed below by clicking on the appropriate district: