The Florida Senate

403.08735  Air emissions trading.--

(1)  GENERIC AIR EMISSIONS BUBBLE RULE.--The department shall promulgate by July 1, 1996, a generic air emissions bubble rule to the fullest extent consistent with federal law that includes all elements necessary to obtain approval from the United States Environmental Protection Agency to administer the program. The generic air emissions bubble rule shall eliminate the need for case-by-case federal determinations on individual emissions trades within a single facility as individual State Implementation Plan revisions. For purposes of promulgating a generic air emissions bubble rule:

(a)  The term "bubble" shall mean an air pollution control strategy which allows multiunit aggregate emission limits to be established within a facility, in lieu of unit-specific emission limits, on a pollutant-specific basis at the request of the facility owner or operator. The application of a bubble to a facility would allow emissions at one or more emissions points or units to fluctuate within a facility as long as the multiunit limit is not exceeded. Multiunit limits shall be established by aggregating unit-specific limits for all new or existing units being included in the bubble. The bubble shall also allow the department to establish, at the request of the owner or operator of a facility, alternative emission limits for individual units as long as the aggregated emissions limit for all involved units is not increased.

(b)  The term "facility" shall mean all emissions units that are located on one or more contiguous or adjacent properties that are under common control of the same person or persons. For purposes of this section, the terms "plantwide" and "facilitywide" are used interchangeably.

(2)  AIR EMISSIONS TRADING COMMISSION.--An Air Emissions Trading Commission shall be created within the department to develop the framework for a voluntary emissions trading program that is consistent with the 1994 Economic Incentive Program Final Rules (40 C.F.R. part 51). The commission shall also review areawide and source-specific plantwide applicability limits for the department's New Source Review program.

(a)  The emissions trading program shall allow for emissions trading consistent with federal law and shall include all elements necessary to obtain approval from the United States Environmental Protection Agency to administer the program. The program developed by the commission shall address:

1.  The definition and use of emissions reduction credits from mobile and stationary sources.

2.  The role of offsets in emissions trading.

3.  The mechanisms needed to facilitate both a voluntary emissions banking and trading program and to establish a private market.

4.  The role of interstate or regional emissions trading.

5.  The role of economic incentives for reducing air emissions.

(b)  The commission shall review both areawide and source-specific plantwide applicability limits as described in the Environmental Protection Agency's July 1994 draft proposal for New Source Review Reform. As drafted, the facilitywide applicability limit program would generally allow physical and operational changes at facilities to occur without triggering new source review requirements as long as facilitywide emission limits are not exceeded. Based on this review, the commission shall recommend a simple way to incorporate a voluntary facilitywide applicability limit program into Florida's air emissions trading program, once the final New Source Review Reform rules are promulgated by the Environmental Protection Agency.

(c)  The commission shall be comprised of nine members, including the director of the Division of Air Resources Management who shall serve as the chair, one economist with experience in the commodities field, and the following seven members who shall have at least 4 years of experience in the field of air quality regulations:

1.  One representative from a local government with an approved local air pollution control program under s. 403.182.

2.  One representative from the environmental and conservation community or nonprofit health organization.

3.  One representative from the petroleum industry.

4.  One representative from the pulp and paper industry.

5.  One representative from the chemical industry.

6.  One representative from the electric utility industry.

7.  One representative from an organization concerned with mobile source emissions.

(d)  The Governor shall appoint the members of the commission as specified in subparagraphs (c)1.-7., within 45 days after June 15, 1995.

(e)  The commission shall meet upon the call of the chair and shall meet a minimum of three times prior to November 1, 1995. A majority of the commission shall constitute a quorum for the transaction of business.

(f)  By November 15, 1995, the commission shall provide a draft framework for the emissions banking and trading program along with an analysis of whether the program is applicable in Florida. A public hearing shall be held to receive comments on the draft program and the commission's analysis of that program. The public comments shall be considered and incorporated, if appropriate, into a report for the Legislature.

(g)  By January 15, 1996, the commission shall report its findings to the President of the Senate and the Speaker of the House of Representatives and, based on the outcome of the study, recommend legislation modeled after the proposed framework for the air emissions banking and trading program. The commission shall cease to exist at the conclusion of the 1996 legislative session.

(h)  Any person who is a member of the commission may hold such membership concurrently with, and in addition to, any other elective or appointive office or offices.

(i)  Commission members who are not state employees shall serve without compensation, but are entitled to per diem and travel expenses pursuant to s. 112.061.

(j)  All meetings of the commission shall be noticed and open to the public.

(3)  VOLUNTARY LIMITS ON AIR EMISSIONS.--The department shall adopt rules to allow facilities to voluntarily limit their emissions to avoid otherwise applicable requirements.

History.--s. 1, ch. 95-292.