10.1-1322.3 - Emissions trading programs; emissions credits; Board to promulgate regulations. - Virginia Statutes

§ 10.1-1322.3. Emissions trading programs; emissions credits; Board topromulgate regulations.

In accordance with § 10.1-1308, the Board may promulgate regulations toprovide for emissions trading programs to achieve and maintain the NationalAmbient Air Quality Standards established by the United States EnvironmentalProtection Agency, under the federal Clean Air Act. The regulations shallcreate an air emissions banking and trading program for the Commonwealth, tothe extent not prohibited by federal law, that results in net air emissionreductions, creates an economic incentive for reducing air emissions, andallows for continued economic growth through a program of banking and tradingcredits or allowances. The regulations applicable to the electric powerindustry shall foster competition in the electric power industry, encourageconstruction of clean, new generating facilities, provide without charge newsource set-asides of five percent for the first five plan years and twopercent per year thereafter, and provide an initial allocation period of fiveyears. In promulgating such regulations the Board shall consider, but not belimited to, the inclusion of provisions concerning (i) the definition and useof emissions reduction credits or allowances from mobile and stationarysources, (ii) the role of offsets in emissions trading, (iii) interstate orregional emissions trading, (iv) the mechanisms needed to facilitateemissions trading and banking, and (v) the role of emissions allocations inemissions trading. No regulations shall prohibit the direct trading of airemissions credits or allowances between private industries, provided suchtrades do not adversely impact air quality in Virginia.

(1994, c. 204; 1999, c. 1022; 2001, c. 580; 2004, c. 334.)