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, 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
shall be 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 since 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 such 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 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 is
authorized to charge a reasonable transaction fee at the time any
credits are registered the fees to be deposited 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 develop rules 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.
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(NOTE: The purpose of this bill is to add provisions to the
air pollution control law to require the establishment of an air
emission's credits banking and trading program to assist sources
in meeting regulatory requirements and to allow for continued economic growth consistent with helping to achieve and maintain
air quality standards. The bill also required the proposal of
rules.
This section is new; therefore, strike throughs and
underscoring have been omitted.
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On page two, section eighteen, line two, after the word
"propose" by inserting the words "for promulgation in accordance
with article three, chapter twenty-nine-a of this code";
On page two, section eighteen, line twelve, by striking out
the words "shall be" and inserting in lieu thereof the word "is";
On page two, section eighteen, line sixteen, by striking out
the word "since" and inserting in lieu thereof the word "after";
On page three, section eighteen, line nineteen, by striking
out the word "such" and inserting in lieu thereof the word "the";
On page three, section eighteen, line twenty-four, by striking
out the word "eductions" and inserting in lieu thereof the word
"reductions";
On page three, section eighteen, line twenty-six, after the
word "of" by inserting the word "the";
On page three, section eighteen, line thirty, by striking out
the words "is authorized to" and inserting in lieu thereof the word "may";
On page three, section eighteen, line thirty-two, after the
word "registered" by inserting the words "and shall deposit";
On page three, section eighteen, line thirty-two, after the
word "fees" by striking out the words "to be deposited";
On page four, section eighteen, line fifty-one, by striking
out the word "develop" and inserting in lieu thereof the word
"propose";
And,
On page four, section eighteen, line fifty-one, after the word
"rules" by inserting the words "for promulgation in accordance
with article three, chapter twenty-nine-a of this code".
Adopted
Rejected
FINANCE COMMITTEE AMENDMENTS