Revision: Dec. 10, 2009, midnight
HB 1251 – AS INTRODUCED
2010 SESSION
08/09
HOUSE BILL 1251
AN ACT relative to the sale and transfer procedures for shutdown emissions credits.
SPONSORS: Rep. Kaen, Straf 7; Rep. Townsend, Graf 10; Sen. Merrill, Dist 21; Sen. Bradley, Dist 3
COMMITTEE: Science, Technology and Energy
This bill clarifies the sale and transfer procedures for shutdown emissions credits.
This bill is a request of the department of environmental services.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
10-2230
08/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Ten
AN ACT relative to the sale and transfer procedures for shutdown emissions credits.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Shutdown Emissions Credits. RSA 125-J:5, VIII-X are repealed and reenacted to read as follows:
VIII. Shutdown emissions credits obtained by the state pursuant to this chapter shall be used or held for use by the governor and council for meeting any requirement of the state implementation plan, any attainment demonstration under the Clean Air Act, or for transfer to new or existing devices and sources in the state which require offsets under the Clean Air Act.
IX. A source or device that requires offsets under the Clean Air Act and is requesting to purchase or transfer shutdown emissions credits, shall file an application with the department setting forth the following information:
(a) Whether the shutdown credits will result in job retention;
(b) Whether the shutdown credits will be used for economic development in New Hampshire;
(c) Whether the company offers prospects for long-term growth and job creation;
(d) Whether the company is a New Hampshire business or is relocating to New Hampshire;
(e) The market value of the shutdown credits and the information used to make such determination;
(f) Whether the source or device is requesting to purchase the shutdown emissions credits or transfer the shutdown emissions credits in accordance with paragraph XI;
(g) The date that the department received an application for an air permit;
(h) The air quality classification of the area where the source or device will be located;
(i) The date that the source or device is estimated to commence operation; and
(j) The number of offsets required to comply with requirements of the Clean Air Act.
X. The department shall provide, in writing, to the governor and council its recommendation and the basis for such recommendation based on the information submitted by the applicant in accordance with paragraph IX.
XI. If the governor and council determine that the shutdown emissions credits shall be transferred to the applicant in lieu of an outright purchase, then within 18 months of the commencement of operation of the source or device, the applicant shall:
(a) Purchase on the open market, as approved by the department, the same quantity of ERCs that were transferred to the source or device and relinquish these ERCs to the state; or
(b) Pay the market value, as determined to the department, of the ERCs into the special account within the air resources permit fund as provided in paragraph XIII.
XII. Shutdown emissions credits that have been transferred to the applicant for a source or device that requires offsets under the Clean Air Act shall revert to the state, upon notice by the department, 3 years after the date of transfer, contingent upon the following:
(a) The department denies an application for a permit in accordance with RSA 125-C:13;
(b) An application for an air permit in accordance with RSA 125-C:11 was never received by the department;
(c) The source or device was never constructed; or
(d) The source or device failed to commence operation.
XIII. Funds from the sale of shutdown emissions credits shall be deposited in a special account within the air resources permit fund to be used by the governor and council for the acquisition and generation of ERCs for future economic development.
XIV. The use of emissions reduction credits by a utility, as defined in RSA 362:2, shall be subject to such additional conditions as ordered pursuant to applicable law by the public utilities commission.
2 Effective Date. This act shall take effect 60 days after its passage.