ENGROSSED
COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 407
(By Senator Dittmar)
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[Originating in the Committee on Natural Resources;
reported February 12, 1998.]
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A BILL to amend article five, chapter twenty-two of the code of
West Virginia, one thousand nine hundred thirty-one, as
amended, by adding thereto a new section, designated section
eighteen, relating to requiring the director of the division
of environmental protection to propose legislative rules;
establishing a market-based air emission banking and trading
program; and providing for emissions credits.
Be it enacted by the Legislature of West Virginia:
That article five, chapter twenty-two of the code of West
Virginia, one thousand nine hundred thirty-one, as amended, be
amended by adding thereto a new section, designated section eighteen, to read as follows:
ARTICLE 5. AIR POLLUTION CONTROL.
§22-5-18. Market-based banking and trading programs, emissions
credits; director to promulgate rules.
(a) Within one hundred eighty days after the effective date of
this section, the director shall propose for promulgation in
accordance with article three, chapter twenty-nine-a of this
code, to the full extent allowed by federal and state law, one or
more rules establishing a voluntary emissions trading and banking
program that provides incentives to make progress toward the
attainment or maintenance of the national ambient air quality
standards, the reduction or prevention of hazardous air
contaminants or the protection of human health and welfare and
the environment from air pollution.
(b) Any person reducing air emission from a source to a
greater extent than otherwise required by state or federal law
is entitled to an emissions credit in the amount of the excess
emission reduction. The director shall establish a system by
rule for quantifying, verifying and registering all emissions
reduction credits, which are eligible for banking and trading if
achieved after the first day of January, one thousand nine
hundred ninety-one, to the extent permitted by federal law.
Credits also shall be available for permanent shutdowns: Provided, That the credits may only be used thereafter at a site
in the state owned by that entity or may be transferred by the
depositor to the state office of economic development or to a
public interest group of the depositor's designation. Except for
voluntary reductions of nitrogen oxides, ten percent of any
emission credits registered with the director shall be credited
to an account for the benefit of the state and retired from
future use, if not used within ten years. All other emissions
reduction credits registered shall remain in effect until used
and debited or retired, if not used within ten years. The
director may charge a reasonable transaction fee at the time any
credits are registered and shall deposit the fees in the air
pollution control fund.
(c) Emission credits registered by a person in accordance with
subsection (b) of this section may be used by the person to
satisfy emission reduction requirements that would otherwise be
required under state or federal law or the credits may be used
for the same purpose at another source, by the person who
registered the credit or by another person to whom the credit was
transferred. Same source use of banked emission credits requires
prior notification to the West Virginia office of air quality.
The rules may not prohibit the transfer of credits among persons,
but shall establish procedures by which transfers are identified, tracked and accounted for in the program. The division may
establish the emissions trading program as a state, multistate or
regional program as long as the program contributes to the goal
of improving the air quality in West Virginia and in the air
quality region where the source is located.
(d) The director may propose rules for promulgation in
accordance with article three, chapter twenty-nine-a of this
code, establishing classes of volatile organic compounds, and
shall allow banking and trading of different volatile organic
compounds within the same class. In lieu thereof, trading shall
be allowed among all volatile organic compounds where not
inconsistent with federal law and where similar degrees of hazard
and qualitative impact are anticipated with respect to air
quality. For any emissions banking and trading program used for
the purpose of making progress toward attaining or maintaining
the national ambient air quality standard for ozone, the director
may allow reductions of volatile organic compounds to be
substituted for required reductions of oxides of nitrogen, or
reductions of oxides of nitrogen to be substituted for required
reductions of volatile organic compounds, where appropriate, if
not inconsistent with federal law.