A first-of-its-kind system, RECLAIM, was designed to achieve significant emissions reductions efficiently. Market pressure creates an incentive to decrease emissions far more cheaply than the traditional ‘command and control regulations. The program is administered by the South Coast Air Quality Management District (SCAQMD) and is targeted at entities that emit greater than four tons of NOx/year, effectively every industrial, refining, and power generating facility in LA. The program requires stationary-source emitters of NOx and SOx to reduce emissions each year by capping available credits, called RTCs, and allowing RTC holders to trade with one another.