Legal issues related to creation, banking and use of emission reduction credits (ERCS). Part I: the 'taking' issue - is compensation required if a state or local government confiscates or reduces the quantity of banked ERCS. Final report
Emissions Trading, under the Clean Air Act, includes bubbles, netting, emission offsets, emission reduction banking, and is the subject of an EPA proposed Policy Statement (47 Fed. Reg. 15076, Apr. 7, 1982). These alternatives involve the creation of surplus reductions at certain stacks or vents and use of these reductions to meet requirements applicable to other emission sources. Emissions trades can provide more flexibility, and may therefore be used to reduce control costs, encourage faster compliance and free scarce capital for industrial revitalization. Where private parties have banked surplus emission reductions for future use or sale, states may determine that a portion of these reductions is required for clean air purposes. This paper provides legal analysis of the Constitutional issue of whether by 'taking' all or part of a person's banked emission reduction credits a state becomes liable to compensate that person. The paper concludes that the state would not be liable in this circumstance, particularly if the state had set out in advance, in its banking rule, the circumstances that could give rise to such a taking and the way it would be done.
- Research Organization:
- ICF, Inc., Washington, DC (USA)
- OSTI ID:
- 6502511
- Report Number(s):
- PB-82-221854
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
POLICY AND ECONOMY
54 ENVIRONMENTAL SCIENCES
CLEAN AIR ACT
IMPLEMENTATION
AIR POLLUTION
AIR POLLUTION CONTROL
COST
INDUSTRIAL PLANTS
INDUSTRIAL WASTES
POLLUTION REGULATIONS
STATE GOVERNMENT
CONTROL
LAWS
POLLUTION
POLLUTION CONTROL
POLLUTION LAWS
REGULATIONS
WASTES
290300* - Energy Planning & Policy- Environment
Health
& Safety
500600 - Environment
Atmospheric- Regulations- (-1989)