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08 Aug 08
CAIR Court Throws Eastern Utility Markets into Financial Tail-Spin
EPA improperly relied upon provisions in the Clean Air Act's (CAA) market-based program that were meant to deal with acid rain, the panel proceeded to vacate completely the EPA's method for allocating emissions allowances to upwind states. This ruling already has had a significant impact on the emissions trading market. Following the decision, the valuation of NOx and SO2 emission credits free fell. Several utilities have already disclosed financial hits in filings with the Securities and Exchange Commission.
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