HB 275 (BR 1041) - J. Gooch
AN ACT relating to air quality.
Create new sections of Subchapter 20 of KRS Chapter 224 to establish definitions; require the Division of Air Quality to promulgate regulations to implement a nitrogen oxide budget trading program; clarify that sections in the bill that establish source pools for electric generating units do not restrict the cabinet from establishing source pools for other NOx budget units; require the Natural Resources and Environmental Protection Cabinet to establish an EGU source pool and an efficient energy reserve source pool for electric generating units; require the cabinet to establish a compliance supplement pool and set aside a portion of the pool for electric generating units; establish eligibility requirements for the EGU source pool and specify the ratio of nitrogen oxide allowance credits allocated to new source and existing electric generating units; provide that the cabinet use a heat input formula to allocate credits to individual budget units in the EGU source pool; permit the cabinet to modify the heat input formula; prohibit the cabinet from allocating credits from the EGU source pool until a transfer of credits is made to the efficient energy reserve pool; prescribe eligibility criteria for allocation of credits from the efficient energy reserve pool; require the cabinet to promulgate administrative regulations to establish a methodology to set aside allowance credits in the compliance supplement pool for electric generating units; establish that the credits set aside for electric generating units in the compliance supplement pool be used first for early reductions and then for inability to meet compliance deadlines; require the Division of Air Quality to sell credits to EGUs that apply for and are approved to receive credits for the reason of inability to meet compliance deadlines; require that allowance credits set aside for industrial sources in the compliance supplement pool be used first for early reductions and second for situations where the industrial source is unable to meet compliance deadlines; require that any credits applied under the reason of inability to meet compliance deadlines be sold to the industrial source; permit the Division of Air Quality to contract with a private entity to sell allowance credits.
Jan 9-introduced in House
Jan 11-to Appropriations and Revenue (H)