                                 CODE OF VIRGINIA

EMISSIONS TRADING PROGRAMS; EMISSIONS CREDITS; BOARD TO PROMULGATE REGULATIONS
(§ 10.1-1322.3)

In accordance with § 10.1-1308, the Board may promulgate regulations to provide
for emissions trading programs to achieve and maintain the National Ambient Air
Quality Standards established by the United States Environmental Protection
Agency, under the federal Clean Air Act. The regulations shall create an air
emissions banking and trading program for the Commonwealth, to the extent not
prohibited by federal law, that results in net air emission reductions, creates
an economic incentive for reducing air emissions, and allows for continued
economic growth through a program of banking and trading credits or allowances.
The regulations applicable to the electric power industry shall foster
competition in the electric power industry, encourage construction of clean, new
generating facilities, provide without charge new source set-asides of five
percent for the first five plan years and two percent per year thereafter, and
provide an initial allocation period of five years. In promulgating such
regulations the Board shall consider, but not be limited to, the inclusion of
provisions concerning (i) the definition and use of emissions reduction credits
or allowances from mobile and stationary sources, (ii) the role of offsets in
emissions trading, (iii) interstate or regional emissions trading, (iv) the
mechanisms needed to facilitate emissions trading and banking, and (v) the role
of emissions allocations in emissions trading. No regulations shall prohibit the
direct trading of air emissions credits or allowances between private
industries, provided such trades do not adversely impact air quality in
Virginia.

HISTORY: 1994, c. 204; 1999, c. 1022; 2001, c. 580; 2004, c. 334.