HB 802 -- AIR EMISSIONS

CO-SPONSORS:  Ransdall, Ostmann, Green (15), Smith, Marble,
Relford, Linton, Griesheimer

COMMITTEE ACTION:  Voted "do pass" by the Committee on
Environment and Energy by a vote of 15 to 0.

This bill requires the Air Conservation Commission to establish
an air emissions banking and trading program.  The Department of
Natural Resources will certify and bank credits for reductions
in air emissions if the reductions are permanent and do not
involve hazardous air pollutants.  Banked credits may be used,
traded, or sold, as long as there are no resulting adverse
impacts on air quality.  If approved by the department, private
entities may also trade credits directly.  In nonattainment
areas, the bank of credits will be reduced annually by 3%, and
net reductions below federally approved permit conditions may be
transferred to offset the construction of new emissions sources.

FISCAL NOTE:  Estimated Net Cost to Natural Resources Protection
Fund - Air Permit of $0 in FY 2002, $144,560 in FY 2003, and
$133,478 in FY 2004.

PROPONENTS:  Supporters say that a banking and trading program
creates an economic incentive for businesses to reduce air
emissions.  The program also provides a means for economic
expansion in the St. Louis nonattainment area.

Testifying for the bill were Representative Ransdall; Associated
Industries of Missouri; and St. Louis Regional Chamber and
Growth Association.

OPPONENTS:  There was no opposition voiced to the committee.

Terry Finger, Senior Legislative Analyst

Missouri House of Representatives
Last Updated November 26, 2001 at 11:45 am