CO2 Offsets Policy Efficiency Act of 1991

C02 Offsets Policy Efficiency Act of 1991 - Amends the Clean Air Act to prohibit new major sources of carbon dioxide from operating without a permit issued under this Act. Provides that such permits shall require source owners or operators to: (1) demonstrate possession of certified carbon dioxide credits equal to the carbon dioxide emissions expected to occur between the commencement of operations and December 31 of the year in which operations begin; and (2) make annual deposits of sufficient carbon dioxide credits into the National Carbon Dioxide Offset Bank to compensate for annual carbon dioxide emissions. Exempts from credit requirements new major sources that use as a fuel trees that are replaced through replanting and that have not been grown as carbon dioxide offsets.

Makes owners or operators of sources emitting excess carbon dioxide liable for an excess emissions penalty. Requires such sources to offset the excess emissions by an equal tonnage amount in the following calendar year. Provides for annual adjustments of the penalty, based on the Consumer Price Index. Makes it unlawful to fail to pay the penalty or to offset emissions.

Requires the Administrator of the Environmental Protection Agency to promulgate regulations concerning the certification of carbon dioxide offset credits. Lists as eligible ways to obtain credits, and directs the Administrator to promulgate regulations for: (1) the certification of carbon dioxide emissions reductions by sources subject to title IV of the Clean Air Act to the extent that such reductions occur from switching to less carbon intensive fuels; (2) regional average annual per acre carbon dioxide fixation rates by tree species over a 100-year period (sets forth eligibility requirements for offset credits for new forests, improved forest management, and old growth forests); (3) the certification of carbon dioxide credits from new vehicle fleet fuel efficiency improvements; (4) the certification of carbon dioxide credits from appliance efficiency improvements; (5) the certification of carbon dioxide credits for energy conservation investments; (6) the certification of carbon dioxide equivalent credits from the capture and use of methane from coalbeds, municipal landfills, wastewater treatment facilities, and sewage sludge facilities; (7) the certification of carbon dioxide credits created by the construction and operation of cogeneration facilities that replace existing industrial boilers or other thermal power not produced by cogeneration; (8) the certification of carbon dioxide equivalent credits for the capture and destruction of chlorofluorocarbons in the United States and other nations; (9) carbon dioxide credits for manufacturers of alternative fuel vehicles that use less carbon intensive fuels than gasoline; (10) the certification of carbon dioxide credits for utility sources that achieve more efficient heat rates through the repowering or replacement of an existing unit; and (11) the certification of carbon dioxide credits for renewable energy sources that replace existing utility sources that emit carbon dioxide.

Requires the Administrator to establish a baseline for sources subject to certification, to be set according to actual performances of such sources during a specified baseline year.

Prohibits certification from being granted for a utility shutdown for purposes of repowering or refurbishing an existing facility.

Authorizes the Administrator to provide for expedited certification carbon dioxide credits.

Authorizes reductions in air pollutants that contribute to global warming to be certified as carbon dioxide offset credits if such reductions meet regulation criteria, except that the amounts of such credits may be reduced or increased based on radiative differences and atmospheric lifetime to reflect the global warming potential of such air pollutants.

Requires the Administrator to establish the minimum elements of a permit program to be administered by any air pollution control agency. Requires State Governors to submit permit programs to the Administrator for approval. Directs the Administrator to enforce programs for States failing to make such submission. Requires permits to set forth inspection, entry, monitoring, compliance certification, and reporting requirements.

Directs the Administrator to create a National Carbon Dioxide Offset Bank to ensure adequate supplies of carbon dioxide offsets and to create procedures for the tracking and retirement of used credits.