ENROLLED
COMMITTEE SUBSTITUTE
FOR
H. B. 4578
(By Delegates Ashley, Martin,
Seacrist and Staton)
[Passed March 13, 1998; in effect ninety days from passage.]
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 legislative rules 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
legislative 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 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 legislative 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.