Missouri CAIR Energy Efficiency and Renewable Energy Set-Aside Program

Program Update:

Pursuant to a court decision in 2008, the Cross-State Air Pollution Rule (CSAPR) which was finalized in 2011 to replace CAIR was vacated by the United States Court of Appeals for the District of Columbia.  On June 24, 2013, upon petition by the EPA, the U.S. Supreme Court announced that ruling would be reviewed. On April 29, 2014, the U.S. Supreme Court reversed the D.C. Circuit opinion vacating CSAPR. EPA is currently reviewing the opinion and CAIR remains in place at this time. Thus, Missouri’s annual NOx trading program set forth in 10 CSR 10-6.362, including the EE/RE set-aside, remains in effect for now.

Missouri's Clean Air Interstate Rule (CAIR) Energy Efficiency and Renewable Energy (EE/RE) Set-Aside Program was established to provide financial incentives for energy efficiency or renewable generation projects that will improve air quality, stimulate local economic activity, diversify energy production in Missouri and provide greater power system reliability.

In 2007, in response to the U.S. Environmental Protection Agency's CAIR requirements for reducing statewide annual emissions of NOx, Missouri established a NOx allowance cap and trade program.  As part of this program, Missouri set aside 300 annual NOx allowances to be awarded annually to energy efficiency and renewable energy projects located in Missouri. Awards may also be made to Missouri electric utilities that sponsor renewable generation projects located outside Missouri.  Eligible in-state projects may qualify to receive awards for up to seven years, and eligible projects located outside the state may qualify for up to five years. The awards are in the form of NOx allowances that can be sold to the highest bidder.

Examples of projects eligible for CAIR EE/RE Set-Aside program include:

  • Energy efficiency projects that reduce the consumption of electricity or increase the efficiency of electricity use.
  • Renewable energy projects that generate electricity from wind, solar, biogas, low impact hydro and stand-alone or co-firing renewable biomass.
  • Combined heat and power (CHP) projects that use integrated technologies to convert fuel to electric, thermal, and mechanical energy simultaneously for on-site or local use.

Important Deadlines:

  • March 1: Initial application & reapplication for projects previously awarded allowances
  • March 31: Request for pre-application project review

Factsheet and Application Guide:

Forms and Appendices: