Senate Bill No. 407
(By Senator Dittmar)
[Introduced February 5, 1998; referred to the Committee
on Natural Resources; and then to the Committee on Finance.]
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 emission's 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 ninety 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 on a statewide
basis 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, 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 emission's credit in the amount of the
excess emission reduction. The director shall establish a system
by rule for quantifying, verifying and registering all emission's
reduction credits, which are eligible for banking and trading if
achieved since the first day of January, one thousand nine
hundred ninety-one. Credits shall be available for permanent
shutdowns as well as reductions. 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.
All other emission's reduction credits registered may not be
retired and shall remain in effect until used and debited. The director is authorized to charge a transaction fee of two dollars
per ton or part thereof 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 that 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
control. 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.
(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. 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 if not inconsistent with federal law.
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
This section is new; therefore, strike-throughs and
underscoring have been omitted.