States of the Ozone Transport Region (OTR) have implemented measures over many years to achieve substantial reductions in the emissions of nitrogen oxides (NOx) and volatile organic compounds (VOC) which contribute to the formation of harmful concentrations of ground-level ozone. Ground-level ozone, the most pervasive pollutant in the United States, aggravates asthma, reduces lung capacity, and makes plants and crops more susceptible to disease. The Ozone Transport Commission (OTC) NOx Memorandum of Understanding (MOU), approved in September 1994, has been a cornerstone of the OTC effort to reduce stationary source NOx emissions in the Northeast and Mid-Atlantic States.

When the MOU was approved, the OTC States called on the U.S. Environmental Protection Agency (EPA) to achieve substantial reductions of ozone and ozone precursors transported into the Northeast and Mid-Atlantic States. The OTC Committees have provided evidence that regional NOx reductions are necessary to protect public health and can be achieved cost effectively.

In September 1998, EPA completed its rulemaking to ensure that such reductions in transport occur. The OTC commends EPA for promulgating its program to substantially reduce regional NOx emissions. EPA has now called for revisions of the State Implementation Plans (SIPs) in most of the eastern United States to achieve NOx emission reductions (the "NOx SIP call"). Implementation of this regional NOx reduction program in the eastern United States still has to be accomplished.

Recent air quality projections have indicated that, with EPA’s plan in place along with State measures, the one-hour ozone standard can be attained and many areas will meet the new eight-hour standard adopted by EPA in 1997. However, it is expected that for some areas of the OTR to attain the eight-hour standard, additional emission reductions will be needed. These reductions need to be incorporated into individual SIPs, and EPA is expected to recognize these reductions as a part of the attainment plans for the eight-hour standard. EPA is also expected to fulfill all Clean Air Act requirements for Federal controls, adopt the additional Federal measures identified by OTAG, and recognize any other emission reductions achieved by State or Federal strategies beyond EPA’s SIP call. With this background in mind, the OTC adopts the following principles:

• At a minimum, the regional NOx reductions envisioned in the OTC NOx MOU Phase III and the EPA NOx SIP call are necessary to reduce ozone transport, achieve the one-hour standard, and make progress in attaining the eight-hour standard throughout the OTR.

• The OTC States commit to work together, with EPA and with States outside the OTR to ensure that these NOx emission reductions are achieved effectively and expeditiously.

• The OTC States will continue to develop feasible regional strategies that may be needed for attainment of the eight-hour standard. The OTC States will also consider the effects of additional control strategies on other regional air quality issues such as fine particulate matter, regional haze, and nitrogen and acid deposition.

• The OTC shall consider emissions trading, pollution prevention, and other innovative technologies and strategies wherever possible to reduce emissions, encourage early compliance, and lower compliance costs.

Signed October 8, 1998, in Newark, New Jersey: