The Virginia Department of Environmental Quality (DEQ) has revised the Regulations for Emissions Trading (9VAC5-140) and proposed them to the Air Pollution Control Board (APCB) via the posted agenda and minibook at the September 28, 2018 meeting. The rule objective is to implement a declining cap on carbon emissions from power generation, and the proposed mechanism is via joining an existing carbon dioxide trading program comprised of mainly Northeast states, the Regional Greenhouse Gas Initiative (RGGI). The two major changes to the proposed rule are:

  1. 9VAC5-140-6040(B) has been changed to remove the blanket exclusion for industrial units. The new language redefines the exemption to be only for CO2 budget sources that are interconnected with manufacturing facilities that supply less than 10% of their annual gross electrical generation to the grid or less than 15% of their annual total useful energy to another entity.
  2. 9VAC5-140-6190 has been changed to reduce the base budget for 2020 from 33 million tons to 28 million tons.

The APCB did not make any action on the proposed rule, and has deferred the decision to the October 29, 2018 meeting.