Answer:
D. allows industries that pollute at levels below the federal cap to sell their extra permits to industries that pollute at levels above the cap.
Step-by-step explanation:
Cap and trade is a program designed by the government to cap the emission of pollution. It is a regulatory program of the government that sets a cap or limit on the total level of pollution that a company is permitted to emit. It is a program designed to reduce the pollution level in the environment.
Under this cap and trade program, the companies who emit more than the level of federal caps are bound to pay taxes, while companies who emit under the federal cap are permitted to trade or sell their unused credits or extra permits to other companies.
Therefore, option D is correct.