Subject: New Hampshire
From: [email-masked]
To: [email-masked]
Cc: [email-masked]
Date: Wed, 21 Nov 2001 07:15:40 -0800 (PST)

Mary, 
We recently spoke with Joe Fontaine of New Hampshire to find out 
what the state is planning for its NOx trading program in 2003.  
New Hampshire is in the OTR NOx trading program but is not 
included in the SIP call.  New Hampshire had considered opting in 
to the SIP call program in 2003 but that seems unlikely now.  
There is a possibility that it will opt in in 2006, but that is also 
unlikely.  The state plans to keep its individual trading program and 
has already amended the state program for 2003-2005. NH units 
will be able to buy allowances from SIP states, but cannot sell NH 
allowances to be used for SIP compliance elsewhere. 

The state is currently arguing with EPA because they believe they 
should automatically receive OTR allowances for 2003, since the 
SIP call was pushed back by the court.  It is unclear what will 
happen to NH in 2003, but it appears that EPA is not planning to 
give the state allowances if officials do not opt in to the SIP call.  
 
EPA proposed an unofficial budget to NH should it decide to opt in,
however state officials greatly objected to the growth factor used, 
saying they were much too small.  The proposed budget was 
around 2,200 allowances and the current OTC budget is 3,700.  
Based on our conversation it also sounds like officials are 
displeased that they were excluded from the 3 state MOU between 
CT, RI and MA as a result of their exclusion from the SIP Call.