643.220. Missouri emissions banking and trading program established by commission--promulgation of rules.

MISSOURI STATUTES AND CODES

643.220. Missouri emissions banking and trading program established by commission--promulgation of rules.

Missouri emissions banking and trading program established bycommission--promulgation of rules.

643.220. 1. The commission shall promulgate rules establishing a"Missouri Air Emissions Banking and Trading Program" to achieve andmaintain the National Ambient Air Quality Standards established by theUnited States Environmental Protection Agency pursuant to the federal CleanAir Act, 42 U.S.C. 7401, et seq., as amended. In promulgating such rules,the commission may consider, but not be limited to, inclusion of provisionsconcerning the definition and transfer of air emissions reduction creditsor allowances between mobile sources, area sources and stationary sources,the role of offsets in emissions trading, interstate and regional emissionstrading and the mechanisms necessary to facilitate emissions trading andbanking, including consideration of the authority of other contiguousstates.

2. The program shall:

(1) Not include any provisions prohibited by federal law;

(2) Be applicable to criteria pollutants and their precursors asdefined by the federal Clean Air Act, as amended;

(3) Not allow banked or traded emissions credits to be used to meetfederal Clean Air Act requirements for hazardous air pollutant standardspursuant to Section 112 of the federal Clean Air Act;

(4) Allow the banking and trading of criteria pollutants that arealso hazardous air pollutants, as defined in Section 112 of the federalClean Air Act, to the extent that verifiable emissions reductions achievedare in excess of those required to meet hazardous air pollutant emissionsstandards promulgated pursuant to Section 112 of the federal Clean Air Act;

(5) Authorize the direct trading of air emission reduction credits orallowances between nongovernmental parties, subject to the approval of thedepartment;

(6) Allow net air emission reductions from federally approved permitconditions to be transferred to other sources for use as offsets requiredby the federal Clean Air Act in nonattainment areas to allow constructionof new emission sources; and

(7) Not allow banking of air emission reductions unless they are inexcess of reductions required by state or federal regulations orimplementation plans.

3. The department shall verify, certify or otherwise approve theamount of an air emissions reduction credit before such credit is banked.Banked credits may be used, traded, sold or otherwise expended within thesame nonattainment area, maintenance area or air quality modeling domain inwhich the air emissions reduction occurred, provided that there will be noresulting adverse impact of air quality.

4. To be creditable for deposit in the Missouri air emissions bank, areduction in air emissions shall be permanent, quantifiable and federallyapproved.

5. To be tradeable between air emission sources, air emissionreduction credits shall be based on air emission reductions that occurafter August 28, 2001, or shall be credits that exist in the current airemissions bank.

6. In nonattainment areas, the bank of criteria pollutants and theirprecursors shall be reduced by three percent annually for as long as thearea is classified as a nonattainment area.