[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 556 Reported in Senate (RS)]






                                                       Calendar No. 768
107th CONGRESS
  2d Session
                                 S. 556

                          [Report No. 107-347]

     To amend the Clean Air Act to reduce emissions from electric 
                  powerplants, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 15, 2001

Mr. Jeffords (for himself, Mr. Lieberman, Ms. Collins, Mr. Schumer, Ms. 
 Snowe, Mrs. Feinstein, Mr. Leahy, Mrs. Clinton, Mr. Kerry, Mr. Dodd, 
  Mr. Torricelli, Mr. Corzine, Mr. Kennedy, Mr. Reed, Mrs. Boxer, Mr. 
    Feingold, Mr. Carper, Mr. Biden, Mr. Chafee, Mr. Wellstone, Mr. 
 Sarbanes, Mr. Wyden, and Mr. Edwards) introduced the following bill; 
 which was read twice and referred to the Committee on Environment and 
                              Public Works

                           November 19, 2002

              Reported by Mr. Jeffords, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL


 
     To amend the Clean Air Act to reduce emissions from electric 
                  powerplants, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Clean Power Act of 
2001''.</DELETED>

<DELETED>SEC. 2. REDUCTION OF EMISSIONS FROM POWERPLANTS.</DELETED>

<DELETED>    Part A of title I of the Clean Air Act (42 U.S.C. 7401 et 
seq.) is amended by adding at the end the following:</DELETED>

<DELETED>``SEC. 132. REDUCTION OF EMISSIONS FROM POWERPLANTS.</DELETED>

<DELETED>    ``(a) Emission Reduction Objectives.--The emission 
reduction objectives of this section are to reduce in the States, not 
later than January 1, 2007--</DELETED>
        <DELETED>    ``(1) aggregate sulfur dioxide emissions from 
        powerplants by 75 percent from the levels required at full 
        implementation of the Phase II sulfur dioxide requirements 
        under title IV (relating to acid deposition control);</DELETED>
        <DELETED>    ``(2) aggregate nitrogen oxide emissions from 
        powerplants by 75 percent from 1997 levels;</DELETED>
        <DELETED>    ``(3) aggregate carbon dioxide emissions from 
        powerplants to the level of carbon dioxide emissions from 
        powerplants in 1990; and</DELETED>
        <DELETED>    ``(4) aggregate mercury emissions from powerplants 
        by 90 percent from 1999 levels.</DELETED>
<DELETED>    ``(b) Agency Action.--</DELETED>
        <DELETED>    ``(1) Regulations.--</DELETED>
                <DELETED>    ``(A) In general.--Not later than 2 years 
                after the date of enactment of this section, the 
                Administrator shall promulgate regulations to achieve 
                the emission reduction objectives specified in 
                subsection (a).</DELETED>
                <DELETED>    ``(B) Elements.--The regulations 
                promulgated under subparagraph (A)--</DELETED>
                        <DELETED>    ``(i) shall achieve the objectives 
                        in a manner that the Administrator determines 
                        will allocate required emission reductions 
                        equitably, taking into account emission 
                        reductions achieved before the date of 
                        enactment of this section and other relevant 
                        factors;</DELETED>
                        <DELETED>    ``(ii) may include market-oriented 
                        mechanisms (such as emissions trading based on 
                        generation performance standards, auctions, or 
                        other allocation methods), except that 
                        emissions trading in mercury shall be 
                        prohibited;</DELETED>
                        <DELETED>    ``(iii) shall prevent localized 
                        adverse effects on public health and the 
                        environment and ensure that significant 
                        emission reductions are achieved in both the 
                        eastern and western regions;</DELETED>
                        <DELETED>    ``(iv) shall ensure that any 
                        captured or recovered mercury is not re-
                        released into the environment; and</DELETED>
                        <DELETED>    ``(v) shall include--</DELETED>
                                <DELETED>    ``(I) appropriate 
                                incentives to increase energy 
                                efficiency, and to use renewable 
                                energy, to achieve the emission 
                                reduction objectives specified in 
                                subsection (a); and</DELETED>
                                <DELETED>    ``(II) policies to reduce 
                                the rate of growth of natural gas 
                                consumption that are at least as 
                                effective as the advanced demand-side 
                                policies for end-use sectors and 
                                advanced supply-side policies for the 
                                electricity sector described in the 
                                report prepared by the Department of 
                                Energy entitled `Scenarios for a Clean 
                                Energy Future' and dated November 
                                2000.</DELETED>
        <DELETED>    ``(2) Effect of failure to promulgate.--If the 
        Administrator fails to promulgate regulations in accordance 
        with paragraph (1) by the date specified in that paragraph, 
        each powerplant shall achieve the emission reduction objectives 
        specified in subsection (a) that are applicable to the 
        powerplant.</DELETED>
<DELETED>    ``(c) Additional Reductions.--The regulations promulgated 
under subsection (b) may require additional reductions in emissions 
from powerplants if the Administrator determines that the emission 
levels necessary to achieve the emission reduction objectives specified 
in subsection (a) are not reasonably anticipated to protect public 
health or welfare.</DELETED>
<DELETED>    ``(d) Modernization of Outdated Powerplants.--</DELETED>
        <DELETED>    ``(1) In general.--On the later of the date that 
        is 30 years after the outdated powerplant commences operation 
        or the date that is 5 years after the date of enactment of this 
        section, each outdated powerplant shall comply with--</DELETED>
                <DELETED>    ``(A) the most recent new source 
                performance standards promulgated under section 111; 
                and</DELETED>
                <DELETED>    ``(B) the requirements under parts C and D 
                that are applicable to modified sources.</DELETED>
        <DELETED>    ``(2) Additional requirements.--The requirements 
        of this subsection shall be in addition to the requirements of 
        the regulations promulgated under subsection (b).</DELETED>
<DELETED>    ``(e) Other Requirements.--This section does not affect 
the applicability of any other requirement of this Act.</DELETED>
<DELETED>    ``(f) Definitions.--In this section:</DELETED>
        <DELETED>    ``(1) Western region.--The term `western region' 
        means all States that have a majority of their land area within 
        the region encompassed by the Western Systems Coordinating 
        Council.</DELETED>
        <DELETED>    ``(2) Eastern region.--The term `eastern region' 
        means all States that are not in the western region.</DELETED>
        <DELETED>    ``(3) Outdated powerplant.--The term `outdated 
        powerplant' means a powerplant that has been in operation for a 
        period of 30 years or more.</DELETED>
        <DELETED>    ``(4) Powerplant.--The term `powerplant' means an 
        electric generation facility with a nameplate capacity of 15 
        megawatts or more that uses a combustion device to generate 
        electricity for sale.''.</DELETED>

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Clean Power Act of 2002''.

SEC. 2. ELECTRIC ENERGY GENERATION EMISSION REDUCTIONS.

    (a) In General.--The Clean Air Act (42 U.S.C. 7401 et seq.) is 
amended by adding at the end the following:

      ``TITLE VII--ELECTRIC ENERGY GENERATION EMISSION REDUCTIONS

        ``Sec. 701. Findings.
        ``Sec. 702. Purposes.
        ``Sec. 703. Definitions.
        ``Sec. 704. Emission limitations.
        ``Sec. 705. Emission allowances.
        ``Sec. 706. Permitting and trading of emission allowances.
        ``Sec. 707. Emission allowance allocation.
        ``Sec. 708. Mercury emission limitations.
        ``Sec. 709. Other hazardous air pollutants.
        ``Sec. 710. Effect of failure to promulgate regulations.
        ``Sec. 711. Prohibitions.
        ``Sec. 712. Modernization of electricity generating facilities.
        ``Sec. 713. Relationship to other law.

``SEC. 701. FINDINGS.

    ``Congress finds that--
            ``(1) public health and the environment continue to suffer 
        as a result of pollution emitted by powerplants across the 
        United States, despite the success of Public Law 101-549 
        (commonly known as the `Clean Air Act Amendments of 1990') (42 
        U.S.C. 7401 et seq.) in reducing emissions;
            ``(2) according to the most reliable scientific knowledge, 
        acid rain precursors must be significantly reduced for the 
        ecosystems of the Northeast and Southeast to recover from the 
        ecological harm caused by acid deposition;
            ``(3) because lakes and sediments across the United States 
        are being contaminated by mercury emitted by powerplants, there 
        is an increasing risk of mercury poisoning of aquatic habitats 
        and fish-consuming human populations;
            ``(4)(A) electricity generation accounts for approximately 
        40 percent of the total emissions in the United States of 
        carbon dioxide, a major greenhouse gas causing global warming; 
        and
            ``(B) the quantity of carbon dioxide in the atmosphere is 
        growing without constraint and well beyond the international 
        commitments of the United States;
            ``(5) the cumulative impact of powerplant emissions on 
        public and environmental health must be addressed swiftly by 
        reducing those harmful emissions to levels that are less 
        threatening; and
            ``(6)(A) the atmosphere is a public resource; and
            ``(B) emission allowances, representing permission to use 
        that resource for disposal of air pollution from electricity 
        generation, should be allocated to promote public purposes, 
        including--
                    ``(i) protecting electricity consumers from adverse 
                economic impacts;
                    ``(ii) providing transition assistance to adversely 
                affected employees, communities, and industries; and
                    ``(iii) promoting clean energy resources and energy 
                efficiency.

``SEC. 702. PURPOSES.

    ``The purposes of this title are--
            ``(1) to alleviate the environmental and public health 
        damage caused by emissions of sulfur dioxide, nitrogen oxides, 
        carbon dioxide, and mercury resulting from the combustion of 
        fossil fuels in the generation of electric and thermal energy;
            ``(2) to reduce by 2008 the annual national emissions from 
        electricity generating facilities to not more than--
                    ``(A) 2,250,000 tons of sulfur dioxide;
                    ``(B) 1,510,000 tons of nitrogen oxides;
                    ``(C) 2,050,000,000 tons of carbon dioxide; and
                    ``(D) 5 tons of mercury;
            ``(3) to effectuate the reductions described in paragraph 
        (2) by--
                    ``(A) requiring electricity generating facilities 
                to comply with specified emission limitations by 
                specified deadlines; and
                    ``(B) allowing electricity generating facilities to 
                meet the emission limitations (other than the emission 
                limitation for mercury) through an alternative method 
                of compliance consisting of an emission allowance and 
                transfer system; and
            ``(4) to encourage energy conservation, use of renewable 
        and clean alternative technologies, and pollution prevention as 
        long-range strategies, consistent with this title, for reducing 
        air pollution and other adverse impacts of energy generation 
        and use.

``SEC. 703. DEFINITIONS.

    ``In this title:
            ``(1) Covered pollutant.--The term `covered pollutant' 
        means--
                    ``(A) sulfur dioxide;
                    ``(B) any nitrogen oxide;
                    ``(C) carbon dioxide; and
                    ``(D) mercury.
            ``(2) Electricity generating facility.--The term 
        `electricity generating facility' means an electric or thermal 
        electricity generating unit, a combination of such units, or a 
        combination of 1 or more such units and 1 or more combustion 
        devices, that--
                    ``(A) has a nameplate capacity of 15 megawatts or 
                more (or the equivalent in thermal energy generation, 
                determined in accordance with a methodology developed 
                by the Administrator);
                    ``(B) generates electric energy, for sale, through 
                combustion of fossil fuel; and
                    ``(C) emits a covered pollutant into the 
                atmosphere.
            ``(3) Electricity intensive product.--The term `electricity 
        intensive product' means a product with respect to which the 
        cost of electricity consumed in the production of the product 
        represents more than 5 percent of the value of the product.
            ``(4) Emission allowance.--The term `emission allowance' 
        means a limited authorization to emit in accordance with this 
        title--
                    ``(A) 1 ton of sulfur dioxide;
                    ``(B) 1 ton of nitrogen oxides; or
                    ``(C) 1 ton of carbon dioxide.
            ``(5) Energy efficiency project.--The term `energy 
        efficiency project' means any specific action (other than 
        ownership or operation of an energy efficient building) 
        commenced after the date of enactment of this title--
                    ``(A) at a facility (other than an electricity 
                generating facility), that verifiably reduces the 
                annual electricity or natural gas consumption per unit 
                output of the facility, as compared with the annual 
                electricity or natural gas consumption per unit output 
                that would be expected in the absence of an allocation 
                of emission allowances (as determined by the 
                Administrator); or
                    ``(B) by an entity that is primarily engaged in the 
                transmission and distribution of electricity, that 
                significantly improves the efficiency of that type of 
                entity, as compared with standards for efficiency 
                developed by the Administrator, in consultation with 
                the Secretary of Energy, after the date of enactment of 
                this title.
            ``(6) Energy efficient building.--The term `energy 
        efficient building' means a residential building or commercial 
        building completed after the date of enactment of this title 
        for which the projected lifetime consumption of electricity or 
        natural gas for heating, cooling, and ventilation is at least 
        30 percent less than the lifetime consumption of a typical new 
        residential building or commercial building, as determined by 
        the Administrator (in consultation with the Secretary of 
        Energy)--
                    ``(A) on a State or regional basis; and
                    ``(B) taking into consideration--
                            ``(i) applicable building codes; and
                            ``(ii) consumption levels achieved in 
                        practice by new residential buildings or 
                        commercial buildings in the absence of an 
                        allocation of emission allowances.
            ``(7) Energy efficient product.--The term `energy efficient 
        product' means a product manufactured after the date of 
        enactment of this title that has an expected lifetime 
        electricity or natural gas consumption that--
                    ``(A) is less than the average lifetime electricity 
                or natural gas consumption for that type of product; 
                and
                    ``(B) does not exceed the lesser of--
                            ``(i) the maximum energy consumption that 
                        qualifies for the applicable Energy Star label 
                        for that type of product; or
                            ``(ii) the average energy consumption of 
                        the most efficient 25 percent of that type of 
                        product manufactured in the same year.
            ``(8) Lifetime.--The term `lifetime' means--
                    ``(A) in the case of a residential building that is 
                an energy efficient building, 30 years;
                    ``(B) in the case of a commercial building that is 
                an energy efficient building, 15 years; and
                    ``(C) in the case of an energy efficient product, a 
                period determined by the Administrator to be the 
                average life of that type of energy efficient product.
            ``(9) Mercury.--The term `mercury' includes any mercury 
        compound.
            ``(10) New clean fossil fuel-fired electricity generating 
        unit.--The term `new clean fossil fuel-fired electricity 
        generating unit' means a unit that--
                    ``(A) has been in operation for 10 years or less; 
                and
                    ``(B) is--
                            ``(i) a natural gas fired generator that--
                                    ``(I) has an energy conversion 
                                efficiency of at least 55 percent; and
                                    ``(II) uses best available control 
                                technology (as defined in section 169);
                            ``(ii) a generator that--
                                    ``(I) uses integrated gasification 
                                combined cycle technology;
                                    ``(II) uses best available control 
                                technology (as defined in section 169); 
                                and
                                    ``(III) has an energy conversion 
                                efficiency of at least 45 percent; or
                            ``(iii) a fuel cell operating on fuel 
                        derived from a nonrenewable source of energy.
            ``(11) Nonwestern region.--The term `nonwestern region' 
        means the area of the States that is not included in the 
        western region.
            ``(12) Renewable electricity generating unit.--The term 
        `renewable electricity generating unit' means a unit that--
                    ``(A) has been in operation for 10 years or less; 
                and
                    ``(B) generates electric energy by means of--
                            ``(i) wind;
                            ``(ii) biomass;
                            ``(iii) landfill gas;
                            ``(iv) a geothermal, solar thermal, or 
                        photovoltaic source; or
                            ``(v) a fuel cell operating on fuel derived 
                        from a renewable source of energy.
            ``(13) Small electricity generating facility.--The term 
        `small electricity generating facility' means an electric or 
        thermal electricity generating unit, or combination of units, 
        that--
                    ``(A) has a nameplate capacity of less than 15 
                megawatts (or the equivalent in thermal energy 
                generation, determined in accordance with a methodology 
                developed by the Administrator);
                    ``(B) generates electric energy, for sale, through 
                combustion of fossil fuel; and
                    ``(C) emits a covered pollutant into the 
                atmosphere.
            ``(14) Western region.--The term `western region' means the 
        area comprising the States of Arizona, California, Colorado, 
        Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, 
        and Wyoming.

``SEC. 704. EMISSION LIMITATIONS.

    ``(a) In General.--Subject to subsections (b) and (c), the 
Administrator shall promulgate regulations to ensure that, during 2008 
and each year thereafter, the total annual emissions of covered 
pollutants from all electricity generating facilities located in all 
States does not exceed--
            ``(1) in the case of sulfur dioxide--
                    ``(A) 275,000 tons in the western region; or
                    ``(B) 1,975,000 tons in the nonwestern region;
            ``(2) in the case of nitrogen oxides, 1,510,000 tons;
            ``(3) in the case of carbon dioxide, 2,050,000,000 tons; or
            ``(4) in the case of mercury, 5 tons.
    ``(b) Excess Emissions Based on Unused Allowances.--The regulations 
promulgated under subsection (a) shall authorize emissions of covered 
pollutants in excess of the national emission limitations established 
under that subsection for a year to the extent that the number of tons 
of the excess emissions is less than or equal to the number of emission 
allowances that are--
            ``(1) used in the year; but
            ``(2) allocated for any previous year under section 707.
    ``(c) Reductions.--For 2008 and each year thereafter, the quantity 
of emissions specified for each covered pollutant in subsection (a) 
shall be reduced by the sum of--
            ``(1) the number of tons of the covered pollutant that were 
        emitted by small electricity generating facilities in the 
        second preceding year; and
            ``(2) any number of tons of reductions in emissions of the 
        covered pollutant required under section 705(h).

``SEC. 705. EMISSION ALLOWANCES.

    ``(a) Creation and Allocation.--
            ``(1) In general.--For 2008 and each year thereafter, 
        subject to paragraph (2), there are created, and the 
        Administrator shall allocate in accordance with section 707, 
        emission allowances as follows:
                    ``(A) In the case of sulfur dioxide--
                            ``(i) 275,000 emission allowances for each 
                        year for use in the western region; and
                            ``(ii) 1,975,000 emission allowances for 
                        each year for use in the nonwestern region.
                    ``(B) In the case of nitrogen oxides, 1,510,000 
                emission allowances for each year.
                    ``(C) In the case of carbon dioxide, 2,050,000,000 
                emission allowances for each year.
            ``(2) Reductions.--For 2008 and each year thereafter, the 
        number of emission allowances specified for each covered 
        pollutant in paragraph (1) shall be reduced by a number equal 
        to the sum of--
                    ``(A) the number of tons of the covered pollutant 
                that were emitted by small electricity generating 
                facilities in the second preceding year; and
                    ``(B) any number of tons of reductions in emissions 
                of the covered pollutant required under subsection (h).
    ``(b) Nature of Emission Allowances.--
            ``(1) Not a property right.--An emission allowance 
        allocated by the Administrator under subsection (a) is not a 
        property right.
            ``(2) No limit on authority to terminate or limit.--Nothing 
        in this title or any other provision of law limits the 
        authority of the United States to terminate or limit an 
        emission allowance.
            ``(3) Tracking and transfer of emission allowances.--
                    ``(A) In general.--Not later than 1 year after the 
                date of enactment of this title, the Administrator 
                shall promulgate regulations to establish an emission 
                allowance tracking and transfer system for emission 
                allowances of sulfur dioxide, nitrogen oxides, and 
                carbon dioxide.
                    ``(B) Requirements.--The emission allowance 
                tracking and transfer system established under 
                subparagraph (A) shall--
                            ``(i) incorporate the requirements of 
                        subsections (b) and (d) of section 412 (except 
                        that written certification by the transferee 
                        shall not be necessary to effect a transfer); 
                        and
                            ``(ii) permit any entity--
                                    ``(I) to buy, sell, or hold an 
                                emission allowance; and
                                    ``(II) to permanently retire an 
                                unused emission allowance.
                    ``(C) Proceeds of transfers.--Proceeds from the 
                transfer of emission allowances by any person to which 
                the emission allowances have been allocated--
                            ``(i) shall not constitute funds of the 
                        United States; and
                            ``(ii) shall not be available to meet any 
                        obligations of the United States.
    ``(c) Identification and Use.--
            ``(1) In general.--Each emission allowance allocated by the 
        Administrator shall bear a unique serial number, including--
                    ``(A) an identifier of the covered pollutant to 
                which the emission allowance pertains; and
                    ``(B) the first year for which the allowance may be 
                used.
            ``(2) Sulfur dioxide emission allowances.--In the case of 
        sulfur dioxide emission allowances, the Administrator shall 
        ensure that the emission allowances allocated to electricity 
        generating facilities in the western region are distinguishable 
        from emission allowances allocated to electricity generating 
        facilities in the nonwestern region.
            ``(3) Year of use.--Each emission allowance may be used in 
        the year for which the emission allowance is allocated or in 
        any subsequent year.
    ``(d) Annual Submission of Emission Allowances.--
            ``(1) In general.--On or before April 1, 2009, and April 1 
        of each year thereafter, the owner or operator of each 
        electricity generating facility shall submit to the 
        Administrator 1 emission allowance for the applicable covered 
        pollutant (other than mercury) for each ton of sulfur dioxide, 
        nitrogen oxides, or carbon dioxide emitted by the electricity 
        generating facility during the previous calendar year.
            ``(2) Special rule for ozone exceedances.--
                    ``(A) Identification of facilities contributing to 
                nonattainment.--Not later than December 31, 2007, and 
                the end of each 3-year period thereafter, each State, 
                consistent with the obligations of the State under 
                section 110(a)(2)(D), shall identify the electricity 
                generating facilities in the State and in other States 
                that are significantly contributing (as determined 
                based on guidance issued by the Administrator) to 
                nonattainment of the national ambient air quality 
                standard for ozone in the State.
                    ``(B) Submission of additional allowances.--In 2008 
                and each year thereafter, on petition from a State or a 
                person demonstrating that the control measures in 
                effect at an electricity generating facility that is 
                identified under subparagraph (A) as significantly 
                contributing to nonattainment of the national ambient 
                air quality standard for ozone in a State during the 
                previous year are inadequate to prevent the significant 
                contribution described in subparagraph (A), the 
                Administrator, if the Administrator determines that the 
                electricity generating facility is inadequately 
                controlled for nitrogen oxides, may require that the 
                electricity generating facility submit 3 nitrogen oxide 
                emission allowances for each ton of nitrogen oxides 
                emitted by the electricity generating facility during 
                any period of an exceedance of the national ambient air 
                quality standard for ozone in the State during the 
                previous year.
            ``(3) Regional limitations for sulfur dioxide.--The 
        Administrator shall not allow--
                    ``(A) the use of sulfur dioxide emission allowances 
                allocated for the western region to meet the 
                obligations under this subsection of electricity 
                generating facilities in the nonwestern region; or
                    ``(B) the use of sulfur dioxide emission allowances 
                allocated for the nonwestern region to meet the 
                obligations under this subsection of electricity 
                generating facilities in the western region.
    ``(e) Emission Verification, Monitoring, and Recordkeeping.--
            ``(1) In general.--The Administrator shall ensure that 
        Federal regulations, in combination with any applicable State 
        regulations, are adequate to verify, monitor, and document 
        emissions of covered pollutants from electricity generating 
        facilities.
            ``(2) Inventory of emissions from small electricity 
        generating facilities.--On or before January 1, 2004, the 
        Administrator, in cooperation with State agencies, shall 
        complete, and on an annual basis update, a comprehensive 
        inventory of emissions of sulfur dioxide, nitrogen oxides, 
        carbon dioxide, and particulate matter from small electricity 
        generating facilities.
            ``(3) Monitoring information.--
                    ``(A) In general.--Not later than 180 days after 
                the date of enactment of this title, the Administrator 
                shall promulgate regulations to require each 
                electricity generating facility to submit to the 
                Administrator--
                            ``(i) not later than April 1 of each year, 
                        verifiable information on covered pollutants 
                        emitted by the electricity generating facility 
                        in the previous year, expressed in--
                                    ``(I) tons of covered pollutants; 
                                and
                                    ``(II) tons of covered pollutants 
                                per megawatt hour of energy (or the 
                                equivalent thermal energy) generated; 
                                and
                            ``(ii) as part of the first submission 
                        under clause (i), verifiable information on 
                        covered pollutants emitted by the electricity 
                        generating facility in 1999, 2000, and 2001, if 
                        the electricity generating facility was 
                        required to report that information in those 
                        years.
                    ``(B) Source of information.--Information submitted 
                under subparagraph (A) shall be obtained using a 
                continuous emission monitoring system (as defined in 
                section 402).
                    ``(C) Availability to the public.--The information 
                described in subparagraph (A) shall be made available 
                to the public--
                            ``(i) in the case of the first year in 
                        which the information is required to be 
                        submitted under that subparagraph, not later 
                        than 18 months after the date of enactment of 
                        this title; and
                            ``(ii) in the case of each year thereafter, 
                        not later than April 1 of the year.
            ``(4) Ambient air quality monitoring for sulfur dioxide and 
        hazardous air pollutants.--
                    ``(A) In general.--Beginning January 1, 2004, each 
                coal-fired electricity generating facility with an 
                aggregate generating capacity of 50 megawatts or more 
                shall, in accordance with guidelines issued by the 
                Administrator, commence ambient air quality monitoring 
                within a 30-mile radius of the coal-fired electricity 
                generating facility for the purpose of measuring 
                maximum concentrations of sulfur dioxide and hazardous 
                air pollutants emitted by the coal-fired electricity 
                generating facility.
                    ``(B) Location of monitoring points.--Monitoring 
                under subparagraph (A) shall include monitoring at not 
                fewer than 2 points--
                            ``(i) that are at ground level and within 3 
                        miles of the coal-fired electricity generating 
                        facility;
                            ``(ii) at which the concentration of 
                        pollutants being monitored is expected to be 
                        the greatest; and
                            ``(iii) at which the monitoring shall be 
                        the most frequent.
                    ``(C) Frequency of monitoring of sulfur dioxide.--
                Monitoring of sulfur dioxide under subparagraph (A) 
                shall be carried out on a continuous basis and averaged 
                over 5-minute periods.
                    ``(D) Availability to the public.--The results of 
                the monitoring under subparagraph (A) shall be made 
                available to the public.
    ``(f) Excess Emission Penalty.--
            ``(1) In general.--Subject to paragraph (2), section 411 
        shall be applicable to an owner or operator of an electricity 
        generating facility.
            ``(2) Calculation of penalty.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the penalty for failure to submit 
                emission allowances for covered pollutants as required 
                under subsection (d) shall be equal to 3 times the 
                product obtained by multiplying--
                            ``(i) as applicable--
                                    ``(I) the number of tons emitted in 
                                excess of the emission limitation 
                                requirement applicable to the 
                                electricity generating facility; or
                                    ``(II) the number of emission 
                                allowances that the owner or operator 
                                failed to submit; and
                            ``(ii) the average annual market price of 
                        emission allowances (as determined by the 
                        Administrator).
                    ``(B) Mercury.--In the case of mercury, the penalty 
                shall be equal to 3 times the product obtained by 
                multiplying--
                            ``(i) the number of grams emitted in excess 
                        of the emission limitation requirement for 
                        mercury applicable to the electricity 
                        generating facility; and
                            ``(ii) the average cost of mercury controls 
                        at electricity generating units that have a 
                        nameplate capacity of 15 megawatts or more in 
                        all States (as determined by the 
                        Administrator).
    ``(g) Significant Adverse Local Impacts.--
            ``(1) In general.--If the Administrator determines that 
        emissions of an electricity generating facility may reasonably 
        be anticipated to cause or contribute to a significant adverse 
        impact on an area (including endangerment of public health, 
        contribution to acid deposition in a sensitive receptor area, 
        and other degradation of the environment), the Administrator 
        shall limit the emissions of the electricity generating 
        facility as necessary to avoid that impact.
            ``(2) Violation.--Notwithstanding the availability of 
        emission allowances, it shall be a violation of this Act for 
        any electricity generating facility to exceed any limitation on 
        emissions established under paragraph (1).
    ``(h) Additional Reductions.--
            ``(1) Protection of public health or welfare or the 
        environment.--If the Administrator determines that the emission 
        levels necessary to achieve the national emission limitations 
        established under section 704 are not reasonably anticipated to 
protect public health or welfare or the environment (including 
protection of children, pregnant women, minority or low-income 
communities, and other sensitive populations), the Administrator may 
require reductions in emissions from electricity generating facilities 
in addition to the reductions required under the other provisions of 
this title.
            ``(2) Emission allowance trading.--
                    ``(A) Studies.--
                            ``(i) In general.--In 2011 and at the end 
                        of each 3-year period thereafter, the 
                        Administrator shall complete a study of the 
                        impacts of the emission allowance trading 
                        authorized under this title.
                            ``(ii) Required assessment.--The study 
                        shall include an assessment of ambient air 
                        quality in areas surrounding electricity 
                        generating facilities that participate in 
                        emission allowance trading, including a 
                        comparison between--
                                    ``(I) the ambient air quality in 
                                those areas; and
                                    ``(II) the national average ambient 
                                air quality.
                    ``(B) Limitation on emissions.--If the 
                Administrator determines, based on the results of a 
                study under subparagraph (A), that adverse local 
                impacts result from emission allowance trading, the 
                Administrator may require reductions in emissions from 
                electricity generating facilities in addition to the 
                reductions required under the other provisions of this 
                title.
    ``(i) Use of Certain Other Emission Allowances.--
            ``(1) In general.--Subject to paragraph (2), emission 
        allowances or other emission trading instruments created under 
        title I or IV for sulfur dioxide or nitrogen oxides shall not 
        be valid for submission under subsection (d).
            ``(2) Emission allowances placed in reserve.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), an emission allowance described in 
                paragraph (1) that was placed in reserve under section 
                404(a)(2) or 405 or through regulations implementing 
                controls on nitrogen oxides, because an affected unit 
                emitted fewer tons of sulfur dioxide or nitrogen oxides 
                than were permitted under an emission limitation 
                imposed under title I or IV before the date of 
                enactment of this title, shall be considered to be 
                equivalent to \1/4\ of an emission allowance created by 
                subsection (a) for sulfur dioxide or nitrogen oxides, 
                respectively.
                    ``(B) Emission allowances resulting from 
                achievement of new source performance standards.--If an 
                emission allowance described in subparagraph (A) was 
                created and placed in reserve during the period of 2000 
                through 2007 by the owner or operator of an electricity 
                generating facility through the application of 
                pollution control technology that resulted in the 
                achievement and maintenance by the electricity 
                generating facility of the applicable standards of 
                performance required of new sources under section 111, 
                the emission allowance shall be valid for submission 
                under subsection (d).

``SEC. 706. PERMITTING AND TRADING OF EMISSION ALLOWANCES.

    ``(a) In General.--Not later than 1 year after the date of 
enactment of this title, the Administrator shall promulgate regulations 
to establish a permitting and emission allowance trading compliance 
program to implement the limitations on emissions of covered pollutants 
from electricity generating facilities established under section 704.
    ``(b) Emission Allowance Trading With Facilities Other Than 
Electricity Generating Facilities.--
            ``(1) In general.--Subject to paragraph (2) and section 
        705(i), the regulations promulgated to establish the program 
        under subsection (a) shall prohibit use of emission allowances 
        generated from other emission control programs for the purpose 
        of demonstrating compliance with the limitations on emissions 
        of covered pollutants from electricity generating facilities 
        established under section 704.
            ``(2) Exception for certain carbon dioxide emission control 
        programs.--The prohibition described in paragraph (1) shall not 
        apply in the case of carbon dioxide emission allowances 
        generated from an emission control program that limits total 
        carbon dioxide emissions from the entirety of any industrial 
        sector.
    ``(c) Methodology.--The program established under subsection (a) 
shall clearly identify the methodology for the allocation of emission 
allowances, including standards for measuring annual electricity 
generation and energy efficiency as the standards relate to emissions.

``SEC. 707. EMISSION ALLOWANCE ALLOCATION.

    ``(a) Allocation to Electricity Consumers.--
            ``(1) In general.--For 2008 and each year thereafter, after 
        making allocations of emission allowances under subsections (b) 
        through (f), the Administrator shall allocate the remaining 
        emission allowances created by section 705(a) for the year for 
        each covered pollutant other than mercury to households served 
        by electricity.
            ``(2) Allocation among households.--The allocation to each 
        household shall reflect--
                    ``(A) the number of persons residing in the 
                household; and
                    ``(B) the ratio that--
                            ``(i) the quantity of the residential 
                        electricity consumption of the State in which 
                        the household is located; bears to
                            ``(ii) the quantity of the residential 
                        electricity consumption of all States.
            ``(3) Regulations.--Not later than 1 year after the date of 
        enactment of this title, the Administrator shall promulgate 
        regulations making appropriate arrangements for the allocation 
        of emission allowances to households under this subsection, 
        including as necessary the appointment of 1 or more trustees--
                    ``(A) to receive the emission allowances for the 
                benefit of the households;
                    ``(B) to obtain fair market value for the emission 
                allowances; and
                    ``(C) to distribute the proceeds to the 
                beneficiaries.
    ``(b) Allocation for Transition Assistance.--
            ``(1) In general.--For 2008 and each year thereafter 
        through 2017, the Administrator shall allocate the percentage 
        specified in paragraph (2) of the emission allowances created 
        by section 705(a) for the year for each covered pollutant other 
        than mercury in the following manner:
                    ``(A) 80 percent shall be allocated to provide 
                transition assistance to--
                            ``(i) dislocated workers (as defined in 
                        section 101 of the Workforce Investment Act of 
                        1998 (29 U.S.C. 2801)) whose employment has 
                        been terminated or who have been laid off as a 
                        result of the emission reductions required by 
                        this title; and
                            ``(ii) communities that have experienced 
                        disproportionate adverse economic impacts as a 
                        result of the emission reductions required by 
                        this title.
                    ``(B) 20 percent shall be allocated to producers of 
                electricity intensive products in a number equal to the 
                product obtained by multiplying--
                            ``(i) the ratio that--
                                    ``(I) the quantity of each 
                                electricity intensive product produced 
                                by each producer in the previous year; 
                                bears to
                                    ``(II) the quantity of the 
                                electricity intensive product produced 
                                by all producers in the previous year;
                            ``(ii) the average quantity of electricity 
                        used in producing the electricity intensive 
                        product by producers that use the most energy 
                        efficient process for producing the electricity 
                        intensive product; and
                            ``(iii) with respect to the previous year, 
                        the national average quantity (expressed in 
                        tons) of emissions of each such pollutant per 
                        megawatt hour of electricity generated by 
                        electricity generating facilities in all 
                        States.
            ``(2) Specified percentages.--The percentages referred to 
        in paragraph (1) are--
                    ``(A) in the case of 2008, 6 percent;
                    ``(B) in the case of 2009, 5.5 percent;
                    ``(C) in the case of 2010, 5 percent;
                    ``(D) in the case of 2011, 4.5 percent;
                    ``(E) in the case of 2012, 4 percent;
                    ``(F) in the case of 2013, 3.5 percent;
                    ``(G) in the case of 2014, 3 percent;
                    ``(H) in the case of 2015, 2.5 percent;
                    ``(I) in the case of 2016, 2 percent; and
                    ``(J) in the case of 2017, 1.5 percent.
            ``(3) Regulations for allocation for transition assistance 
        to dislocated workers and communities.--
                    ``(A) In general.--Not later than 1 year after the 
                date of enactment of this title, the Administrator 
                shall promulgate regulations making appropriate 
                arrangements for the distribution of emission 
                allowances under paragraph (1)(A), including as 
                necessary the appointment of 1 or more trustees--
                            ``(i) to receive the emission allowances 
                        allocated under paragraph (1)(A) for the 
                        benefit of the dislocated workers and 
                        communities;
                            ``(ii) to obtain fair market value for the 
                        emission allowances; and
                            ``(iii) to apply the proceeds to providing 
                        transition assistance to the dislocated workers 
                        and communities.
                    ``(B) Form of transition assistance.--Transition 
                assistance under paragraph (1)(A) may take the form 
                of--
                            ``(i) grants to employers, employer 
                        associations, and representatives of 
                        employees--
                                    ``(I) to provide training, 
                                adjustment assistance, and employment 
                                services to dislocated workers; and
                                    ``(II) to make income-maintenance 
                                and needs-related payments to 
                                dislocated workers; and
                            ``(ii) grants to States and local 
                        governments to assist communities in attracting 
                        new employers or providing essential local 
                        government services.
    ``(c) Allocation to Renewable Electricity Generating Units, 
Efficiency Projects, and Cleaner Energy Sources.--For 2008 and each 
year thereafter, the Administrator shall allocate not more than 20 
percent of the emission allowances created by section 705(a) for the 
year for each covered pollutant other than mercury--
            ``(1) to owners and operators of renewable electricity 
        generating units, in a number equal to the product obtained by 
        multiplying--
                    ``(A) the number of megawatt hours of electricity 
                generated in the previous year by each renewable 
                electricity generating unit; and
                    ``(B) with respect to the previous year, the 
                national average quantity (expressed in tons) of 
                emissions of each such pollutant per megawatt hour of 
                electricity generated by electricity generating 
                facilities in all States;
            ``(2) to owners and operators of energy efficient 
        buildings, producers of energy efficient products, and entities 
        that carry out energy efficient projects, in a number equal to 
        the product obtained by multiplying--
                    ``(A) the number of megawatt hours of electricity 
                or cubic feet of natural gas saved in the previous year 
                as a result of each energy efficient building, energy 
                efficient product, or energy efficiency project; and
                    ``(B) with respect to the previous year, the 
                national average quantity (expressed in tons) of 
                emissions of each such pollutant per, as appropriate--
                            ``(i) megawatt hour of electricity 
                        generated by electricity generating facilities 
                        in all States; or
                            ``(ii) cubic foot of natural gas burned for 
                        a purpose other than generation of electricity 
                        in all States;
            ``(3) to owners and operators of new clean fossil fuel-
        fired electricity generating units, in a number equal to the 
        product obtained by multiplying--
                    ``(A) the number of megawatt hours of electricity 
                generated in the previous year by each new clean fossil 
                fuel-fired electricity generating unit; and
                    ``(B) with respect to the previous year, \1/2\ of 
                the national average quantity (expressed in tons) of 
                emissions of each such pollutant per megawatt hour of 
                electricity generated by electricity generating 
                facilities in all States; and
            ``(4) to owners and operators of combined heat and power 
        electricity generating facilities, in a number equal to the 
        product obtained by multiplying--
                    ``(A) the number of British thermal units of 
                thermal energy produced and put to productive use in 
                the previous year by each combined heat and power 
                electricity generating facility; and
                    ``(B) with respect to the previous year, the 
                national average quantity (expressed in tons) of 
                emissions of each such pollutant per British thermal 
                unit of thermal energy generated by electricity 
                generating facilities in all States.
    ``(d) Transition Assistance to Electricity Generating Facilities.--
            ``(1) In general.--For 2008 and each year thereafter 
        through 2017, the Administrator shall allocate the percentage 
        specified in paragraph (2) of the emission allowances created 
        by section 705(a) for the year for each covered pollutant other 
        than mercury to the owners or operators of electricity 
        generating facilities in the ratio that--
                    ``(A) the quantity of electricity generated by each 
                electricity generating facility in 2000; bears to
                    ``(B) the quantity of electricity generated by all 
                electricity generating facilities in 2000.
            ``(2) Specified percentages.--The percentages referred to 
        in paragraph (1) are--
                    ``(A) in the case of 2008, 10 percent;
                    ``(B) in the case of 2009, 9 percent;
                    ``(C) in the case of 2010, 8 percent;
                    ``(D) in the case of 2011, 7 percent;
                    ``(E) in the case of 2012, 6 percent;
                    ``(F) in the case of 2013, 5 percent;
                    ``(G) in the case of 2014, 4 percent;
                    ``(H) in the case of 2015, 3 percent;
                    ``(I) in the case of 2016, 2 percent; and
                    ``(J) in the case of 2017, 1 percent.
    ``(e) Allocation To Encourage Biological Carbon Sequestration.--
            ``(1) In general.--For 2008 and each year thereafter, the 
        Administrator shall allocate, on a competitive basis and in 
        accordance with paragraphs (2) and (3), not more than 0.075 
        percent of the carbon dioxide emission allowances created by 
        section 705(a) for the year for the purposes of--
                    ``(A) carrying out projects to reduce net carbon 
                dioxide emissions through biological carbon dioxide 
                sequestration in the United States that--
                            ``(i) result in benefits to watersheds and 
                        fish and wildlife habitats; and
                            ``(ii) are conducted in accordance with 
                        project reporting, monitoring, and verification 
                        guidelines based on--
                                    ``(I) measurement of increases in 
                                carbon storage in excess of the carbon 
                                storage that would have occurred in the 
                                absence of such a project;
                                    ``(II) comprehensive carbon 
                                accounting that--
                                            ``(aa) reflects net 
                                        increases in carbon reservoirs; 
                                        and
                                            ``(bb) takes into account 
                                        any carbon emissions resulting 
                                        from disturbance of carbon 
                                        reservoirs in existence as of 
                                        the date of commencement of the 
                                        project;
                                    ``(III) adjustments to account 
                                for--
                                            ``(aa) emissions of carbon 
                                        that may result at other 
                                        locations as a result of the 
                                        impact of the project on timber 
                                        supplies; or
                                            ``(bb) potential 
                                        displacement of carbon 
                                        emissions to other land owned 
                                        by the entity that carries out 
                                        the project; and
                                    ``(IV) adjustments to reflect the 
                                expected carbon storage over various 
                                time periods, taking into account the 
                                likely duration of the storage of the 
                                carbon stored in a carbon reservoir; 
                                and
                    ``(B) conducting accurate inventories of carbon 
                sinks.
            ``(2) Carbon inventory.--The Administrator, in consultation 
        with the Secretary of Agriculture, shall allocate not more than 
        \1/3\ of the emission allowances described in paragraph (1) to 
        not more than 5 State or multistate land or forest management 
        agencies or nonprofit entities that--
                    ``(A) have a primary goal of land conservation; and
                    ``(B) submit to the Administrator proposals for 
                projects--
                            ``(i) to demonstrate and assess the 
                        potential for the development and use of carbon 
                        inventorying and accounting systems;
                            ``(ii) to improve the standards relating 
                        to, and the identification of, incremental 
                        carbon sequestration in forests, agricultural 
                        soil, grassland, or rangeland; or
                            ``(iii) to assist in development of a 
                        national biological carbon storage baseline or 
                        inventory.
            ``(3) Revolving loan program.--The Administrator shall 
        allocate not more than \2/3\ of the emission allowances 
        described in paragraph (1) to States, based on proposals 
        submitted by States to conduct programs under which each State 
        shall--
                    ``(A) use the value of the emission allowances to 
                establish a State revolving loan fund to provide loans 
                to owners of nonindustrial private forest land in the 
                State to carry out forest and forest soil carbon 
                sequestration activities that will achieve the purposes 
                specified in paragraph (2)(B); and
                    ``(B) for 2009 and each year thereafter, contribute 
                to the program of the State an amount equal to 25 
                percent of the value of the emission allowances 
                received under this paragraph for the year in cash, in-
                kind services, or technical assistance.
            ``(4) Use of emission allowances.--An entity that receives 
        an allocation of emission allowances under this subsection may 
        use the proceeds from the sale or other transfer of the 
        emission allowances only for the purpose of carrying out 
        activities described in this subsection.
            ``(5) Recommendations concerning carbon dioxide emission 
        allowances.--
                    ``(A) In general.--Not later than 4 years after the 
                date of enactment of this title, the Administrator, in 
                consultation with the Secretary of Agriculture, shall 
                submit to Congress recommendations for establishing a 
                system under which entities that receive grants or 
                loans under this section may be allocated carbon 
                dioxide emission allowances created by section 705(a) 
                for incremental carbon sequestration in forests, 
                agricultural soils, rangeland, or grassland.
                    ``(B) Guidelines.--The recommendations shall 
                include recommendations for development, reporting, 
                monitoring, and verification guidelines for quantifying 
                net carbon sequestration from land use projects that 
                address the elements specified in paragraph (1)(A).
    ``(f) Allocation To Encourage Geological Carbon Sequestration.--
            ``(1) In general.--For 2008 and each year thereafter, the 
        Administrator shall allocate not more than 1.5 percent of the 
        carbon dioxide emission allowances created by section 705(a) to 
        entities that carry out geological sequestration of carbon 
        dioxide produced by an electric generating facility in 
        accordance with requirements established by the Administrator--
                    ``(A) to ensure the permanence of the 
                sequestration; and
                    ``(B) to ensure that the sequestration will not 
                cause or contribute to significant adverse effects on 
                the environment.
            ``(2) Number of emission allowances.--For 2008 and each 
        year thereafter, the Administrator shall allocate to each 
        entity described in paragraph (1) a number of emission 
        allowances that is equal to the number of tons of carbon 
        dioxide produced by the electric generating facility during the 
        previous year that is geologically sequestered as described in 
        paragraph (1).
            ``(3) Use of emission allowances.--An entity that receives 
        an allocation of emission allowances under this subsection may 
        use the proceeds from the sale or other transfer of the 
        emission allowances only for the purpose of carrying out 
        activities described in this subsection.

``SEC. 708. MERCURY EMISSION LIMITATIONS.

    ``(a) In General.--
            ``(1) Regulations.--
                    ``(A) In general.--Not later than 1 year after the 
                date of enactment of this title, the Administrator 
                shall promulgate regulations to establish emission 
                limitations for mercury emissions by coal-fired 
                electricity generating facilities.
                    ``(B) No exceedance of national limitation.--The 
                regulations shall ensure that the national limitation 
                for mercury emissions from each coal-fired electricity 
                generating facility established under section 704(a)(4) 
                is not exceeded.
                    ``(C) Emission limitations for 2008 and 
                thereafter.--In carrying out subparagraph (A), for 2008 
                and each year thereafter, the Administrator shall not--
                            ``(i) subject to subsections (e) and (f) of 
                        section 112, establish limitations on emissions 
                        of mercury from coal-fired electricity 
                        generating facilities that allow emissions in 
                        excess of 2.48 grams of mercury per 1000 
                        megawatt hours; or
                            ``(ii) differentiate between facilities 
                        that burn different types of coal.
            ``(2) Annual review and determination.--
                    ``(A) In general.--Not later than April 1 of each 
                year, the Administrator shall--
                            ``(i) review the total mercury emissions 
                        during the 2 previous years from electricity 
                        generating facilities located in all States; 
                        and
                            ``(ii) determine whether, during the 2 
                        previous years, the total mercury emissions 
                        from facilities described in clause (i) 
                        exceeded the national limitation for mercury 
                        emissions established under section 704(a)(4).
                    ``(B) Exceedance of national limitation.--If the 
                Administrator determines under subparagraph (A)(ii) 
                that, during the 2 previous years, the total mercury 
                emissions from facilities described in subparagraph 
                (A)(i) exceeded the national limitation for mercury 
                emissions established under section 704(a)(4), the 
                Administrator shall, not later than 1 year after the 
                date of the determination, revise the regulations 
                promulgated under paragraph (1) to reduce the emission 
                rates specified in the regulations as necessary to 
                ensure that the national limitation for mercury 
                emissions is not exceeded in any future year.
            ``(3) Compliance flexibility.--
                    ``(A) In general.--Each coal-fired electricity 
                generating facility subject to an emission limitation 
                under this section shall be in compliance with that 
                limitation if that limitation is greater than or equal 
                to the quotient obtained by dividing--
                            ``(i) the total mercury emissions of the 
                        coal-fired electricity generating facility 
                        during each 30-day period; by
                            ``(ii) the quantity of electricity 
                        generated by the coal-fired electricity 
                        generating facility during that period.
                    ``(B) More than 1 unit at a facility.--In any case 
                in which more than 1 coal-fired electricity generating 
                unit at a coal-fired electricity generating facility 
                subject to an emission limitation under this section 
                was operated in 1999 under common ownership or control, 
                compliance with the emission limitation may be 
                determined by averaging the emission rates of all coal-
                fired electricity generating units at the electricity 
                generating facility during each 30-day period.
    ``(b) Prevention of Re-Release.--
            ``(1) Regulations.--Not later than January 1, 2005, the 
        Administrator shall promulgate regulations to ensure that any 
        mercury captured or recovered by emission controls installed at 
        an electricity generating facility is not re-released into the 
        environment.
            ``(2) Required elements.--The regulations shall require--
                    ``(A) daily covers on all active waste disposal 
                units, and permanent covers on all inactive waste 
                disposal units, to prevent the release of mercury into 
                the air;
                    ``(B) monitoring of groundwater to ensure that 
                mercury or mercury compounds do not migrate from the 
                waste disposal unit;
                    ``(C) waste disposal siting requirements and 
                cleanup requirements to protect groundwater and surface 
                water resources;
                    ``(D) elimination of agricultural application of 
                coal combustion wastes; and
                    ``(E) appropriate limitations on mercury emissions 
                from sources or processes that reprocess or use coal 
                combustion waste, including manufacturers of wallboard 
                and cement.

``SEC. 709. OTHER HAZARDOUS AIR POLLUTANTS.

    ``(a) In General.--Not later than January 1, 2004, the 
Administrator shall issue to owners and operators of coal-fired 
electricity generating facilities requests for information under 
section 114 that are of sufficient scope to generate data sufficient to 
support issuance of standards under section 112(d) for hazardous air 
pollutants other than mercury emitted by coal-fired electricity 
generating facilities.
    ``(b) Deadline for Submission of Requested Information.--The 
Administrator shall require each recipient of a request for information 
described in subsection (a) to submit the requested data not later than 
180 days after the date of the request.
    ``(c) Promulgation of Emission Standards.--The Administrator 
shall--
            ``(1) not later than January 1, 2005, propose emission 
        standards under section 112(d) for hazardous air pollutants 
        other than mercury; and
            ``(2) not later than January 1, 2006, promulgate emission 
        standards under section 112(d) for hazardous air pollutants 
        other than mercury.
    ``(d) Prohibition on Excess Emissions.--It shall be unlawful for an 
electricity generating facility subject to standards for hazardous air 
pollutants other than mercury promulgated under subsection (c) to emit, 
after December 31, 2007, any such pollutant in excess of the standards.
    ``(e) Effect on Other Law.--Nothing in this section or section 708 
affects any requirement of subsection (e), (f)(2), or (n)(1)(A) of 
section 112, except that the emission limitations established by 
regulations promulgated under this section shall be deemed to represent 
the maximum achievable control technology for mercury emissions from 
electricity generating units under section 112(d).

``SEC. 710. EFFECT OF FAILURE TO PROMULGATE REGULATIONS.

    ``If the Administrator fails to promulgate regulations to implement 
and enforce the limitations specified in section 704--
            ``(1)(A) each electricity generating facility shall 
achieve, not later than January 1, 2008, an annual quantity of 
emissions that is less than or equal to--
                    ``(i) in the case of nitrogen oxides, 15 percent of 
                the annual emissions by a similar electricity 
                generating facility that has no controls for emissions 
                of nitrogen oxides; and
                    ``(ii) in the case of carbon dioxide, 75 percent of 
                the annual emissions by a similar electricity 
                generating facility that has no controls for emissions 
                of carbon dioxide; and
            ``(B) each electricity generating facility that does not 
        use natural gas as the primary combustion fuel shall achieve, 
        not later than January 1, 2008, an annual quantity of emissions 
        that is less than or equal to--
                    ``(i) in the case of sulfur dioxide, 5 percent of 
                the annual emissions by a similar electricity 
                generating facility that has no controls for emissions 
                of sulfur dioxide; and
                    ``(ii) in the case of mercury, 10 percent of the 
                annual emissions by a similar electricity generating 
                facility that has no controls included specifically for 
                the purpose of controlling emissions of mercury; and
            ``(2) the applicable permit under this Act for each 
        electricity generating facility shall be deemed to incorporate 
        a requirement for achievement of the reduced levels of 
        emissions specified in paragraph (1).

``SEC. 711. PROHIBITIONS.

    ``It shall be unlawful--
            ``(1) for the owner or operator of any electricity 
        generating facility--
                    ``(A) to operate the electricity generating 
                facility in noncompliance with the requirements of this 
                title (including any regulations implementing this 
                title);
                    ``(B) to fail to submit by the required date any 
                emission allowances, or pay any penalty, for which the 
                owner or operator is liable under section 705;
                    ``(C) to fail to provide and comply with any plan 
                to offset excess emissions required under section 
                705(f); or
                    ``(D) to emit mercury in excess of the emission 
                limitations established under section 708; or
            ``(2) for any person to hold, use, or transfer any emission 
        allowance allocated under this title except in accordance with 
        regulations promulgated by the Administrator.

``SEC. 712. MODERNIZATION OF ELECTRICITY GENERATING FACILITIES.

    ``(a) In General.--Beginning on the later of January 1, 2013, or 
the date that is 40 years after the date on which the electricity 
generating facility commences operation, each electricity generating 
facility shall be subject to emission limitations reflecting the 
application of best available control technology on a new major source 
of a similar size and type (as determined by the Administrator) as 
determined in accordance with the procedures specified in part C of 
title I.
    ``(b) Additional Requirements.--The requirements of this section 
shall be in addition to the other requirements of this title.

``SEC. 713. RELATIONSHIP TO OTHER LAW.

    ``(a) In General.--Except as provided in this title, nothing in 
this title--
            ``(1) limits or otherwise affects the application of any 
        other provision of this Act; or
            ``(2) precludes a State from adopting and enforcing any 
        requirement for the control of emissions of air pollutants that 
        is more stringent than the requirements imposed under this 
        title.
    ``(b) Regional Seasonal Emission Controls.--Nothing in this title 
affects any regional seasonal emission control for nitrogen oxides 
established by the Administrator or a State under title I.''.
    (b) Conforming Amendment.--Section 412(a) of the Clean Air Act (42 
U.S.C. 7651k(a)) is amended in the first sentence by striking 
``opacity'' and inserting ``mercury, opacity,''.

SEC. 3. SAVINGS CLAUSE.

    Section 193 of the Clean Air Act (42 U.S.C. 7515) is amended by 
striking ``date of the enactment of the Clean Air Act Amendments of 
1990'' each place it appears and inserting ``date of enactment of the 
Clean Power Act of 2002''.

SEC. 4. ACID PRECIPITATION RESEARCH PROGRAM.

    Section 103(j) of the Clean Air Act (42 U.S.C. 7403(j)) is 
amended--
            (1) in paragraph (3)--
                    (A) in subparagraph (F)(i), by striking ``effects; 
                and'' and inserting ``effects, including an assessment 
                of--
                                    ``(I) acid-neutralizing capacity; 
                                and
                                    ``(II) changes in the number of 
                                water bodies in the sensitive 
                                ecosystems referred to in subparagraph 
                                (G)(ii) with an acid-neutralizing 
                                capacity greater than zero; and''; and
                    (B) by adding at the end the following:
                    ``(G) Sensitive ecosystems.--
                            ``(i) In general.--Beginning in 2004, and 
                        every 4 years thereafter, the report under 
                        subparagraph (E) shall include--
                                    ``(I) an identification of 
                                environmental objectives necessary to 
                                be achieved (and related indicators to 
                                be used in measuring achievement of the 
                                objectives) to adequately protect and 
                                restore sensitive ecosystems; and
                                    ``(II) an assessment of the status 
                                and trends of the environmental 
                                objectives and indicators identified in 
                                previous reports under this paragraph.
                            ``(ii) Sensitive ecosystems to be 
                        addressed.--Sensitive ecosystems to be 
                        addressed under clause (i) include--
                                    ``(I) the Adirondack Mountains, 
                                mid-Appalachian Mountains, Rocky 
                                Mountains, and southern Blue Ridge 
                                Mountains;
                                    ``(II) the Great Lakes, Lake 
                                Champlain, Long Island Sound, and the 
                                Chesapeake Bay; and
                                    ``(III) other sensitive ecosystems, 
                                as determined by the Administrator.
                    ``(H) Acid deposition standards.--Beginning in 
                2004, and every 4 years thereafter, the report under 
                subparagraph (E) shall include a revision of the report 
                under section 404 of Public Law 101-549 (42 U.S.C. 7651 
                note) that includes a reassessment of the health and 
                chemistry of the lakes and streams that were subjects 
                of the original report under that section.''; and
            (2) by adding at the end the following:
            ``(4) Protection of sensitive ecosystems.--
                    ``(A) Determination.--Not later than December 31, 
                2010, the Administrator, taking into consideration the 
                findings and recommendations of the report revisions 
                under paragraph (3)(H), shall determine whether 
                emission reductions under titles IV and VII are 
                sufficient to--
                            ``(i) achieve the necessary reductions 
                        identified under paragraph (3)(F); and
                            ``(ii) ensure achievement of the 
                        environmental objectives identified under 
                        paragraph (3)(G).
                    ``(B) Regulations.--
                            ``(i) In general.--Not later than 2 years 
                        after the Administrator makes a determination 
                        under subparagraph (A) that emission reductions 
                        are not sufficient, the Administrator shall 
                        promulgate regulations to protect the sensitive 
                        ecosystems referred to in paragraph (3)(G)(ii).
                            ``(ii) Contents.--Regulations under clause 
                        (i) shall include modifications to--
                                    ``(I) provisions relating to 
                                nitrogen oxide and sulfur dioxide 
                                emission reductions;
                                    ``(II) provisions relating to 
                                allocations of nitrogen oxide and 
                                sulfur dioxide allowances; and
                                    ``(III) such other provisions as 
                                the Administrator determines to be 
                                necessary.''.

SEC. 5. AUTHORIZATION OF APPROPRIATIONS FOR DEPOSITION MONITORING.

    (a) Operational Support.--In addition to amounts made available 
under any other law, there are authorized to be appropriated for each 
of fiscal years 2003 through 2012--
            (1) for operational support of the National Atmospheric 
        Deposition Program National Trends Network--
                    (A) $2,000,000 to the United States Geological 
                Survey;
                    (B) $600,000 to the Environmental Protection 
                Agency;
                    (C) $600,000 to the National Park Service; and
                    (D) $400,000 to the Forest Service;
            (2) for operational support of the National Atmospheric 
        Deposition Program Mercury Deposition Network--
                    (A) $400,000 to the Environmental Protection 
                Agency;
                    (B) $400,000 to the United States Geological 
                Survey;
                    (C) $100,000 to the National Oceanic and 
                Atmospheric Administration; and
                    (D) $100,000 to the National Park Service;
            (3) for the National Atmospheric Deposition Program 
        Atmospheric Integrated Research Monitoring Network $1,500,000 
        to the National Oceanic and Atmospheric Administration;
            (4) for the Clean Air Status and Trends Network $5,000,000 
        to the Environmental Protection Agency; and
            (5) for the Temporally Integrated Monitoring of Ecosystems 
        and Long-Term Monitoring Program $2,500,000 to the 
        Environmental Protection Agency.
    (b) Modernization.--In addition to amounts made available under any 
other law, there are authorized to be appropriated--
            (1) for equipment and site modernization of the National 
        Atmospheric Deposition Program National Trends Network 
        $6,000,000 to the Environmental Protection Agency;
            (2) for equipment and site modernization and network 
        expansion of the National Atmospheric Deposition Program 
        Mercury Deposition Network $2,000,000 to the Environmental 
        Protection Agency;
            (3) for equipment and site modernization and network 
        expansion of the National Atmospheric Deposition Program 
        Atmospheric Integrated Research Monitoring Network $1,000,000 
        to the National Oceanic and Atmospheric Administration; and
            (4) for equipment and site modernization and network 
        expansion of the Clean Air Status and Trends Network $4,600,000 
        to the Environmental Protection Agency.
    (c) Availability of Amounts.--Each of the amounts appropriated 
under subsection (b) shall remain available until expended.

SEC. 6. TECHNICAL AMENDMENTS.

    Title IV of the Clean Air Act (relating to noise pollution) (42 
U.S.C. 7641 et seq.)--
            (1) is amended by redesignating sections 401 through 403 as 
        sections 801 through 803, respectively; and
            (2) is redesignated as title VIII and moved to appear at 
        the end of that Act.




                                                       Calendar No. 768

107th CONGRESS

  2d Session

                                 S. 556

                          [Report No. 107-347]

_______________________________________________________________________

                                 A BILL

     To amend the Clean Air Act to reduce emissions from electric 
                  powerplants, and for other purposes.

_______________________________________________________________________

                           November 19, 2002

                       Reported with an amendment