SCS SB 374 -- AIR EMISSIONS

SPONSOR:  Steelman (Ransdall)

COMMITTEE ACTION:  Voted "do pass" by the Committee on
Environment and Energy by a vote of 16 to 0.

This substitute 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 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 Senator Steelman; Associated
Industries of Missouri; St. Louis Regional Chamber and Growth
Association; Department of Natural Resources; and Chemistry
Council of Missouri.

OPPONENTS:  There was no opposition voiced to the committee.

Terry Finger, Senior Legislative Analyst

Missouri House of Representatives
Last Updated November 26, 2001 at 11:47 am