[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3989 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 3989

 To amend the Clean Air Act to reduce mercury, carbon dioxide, sulfur 
     dioxide, and nitrogen oxide emissions, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 29, 2007

  Mr. McHugh introduced the following bill; which was referred to the 
Committee on Energy and Commerce, and in addition to the Committees on 
   Natural Resources, Science and Technology, and Agriculture, for a 
 period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL


 
 To amend the Clean Air Act to reduce mercury, carbon dioxide, sulfur 
     dioxide, and nitrogen oxide emissions, and for other purposes.

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

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    This Act may be cited as the ``Healthy Air and Clean Water Act''.

        TITLE I--MERCURY AND CARBON DIOXIDE EMISSION REDUCTIONS

Sec. 101. Findings and purposes.
Sec. 102. Mercury and carbon dioxide emissions reductions.
Sec. 103. Protecting sensitive regional ecosystems.
Sec. 104. Authorization of appropriations.
Sec. 105. Modernization.
         TITLE II--SULFUR DIOXIDE AND NITROGEN OXIDE EMISSIONS

Sec. 201. Reduction of emissions from powerplants.

        TITLE I--MERCURY AND CARBON DIOXIDE EMISSION REDUCTIONS

SEC. 101. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that--
            (1) fossil fuel-fired electric generating units emit 
        approximately \1/3\ of the total mercury and carbon dioxide 
        emission in the United States;
            (2) the Environmental Protection Agency has yet to 
        adequately address the emissions of either mercury or carbon 
        dioxide;
            (3) owners of electric generating units seek regulatory 
        certainty when complying with environmental standards; and
            (4) many states have already taken action, either by 
        themselves or in partnerships, to reduce their emissions of 
        mercury and carbon dioxide.
    (b) Purposes.--The purposes of this Act are--
            (1) to protect the quality of our Nation's air and water 
        quality by substantially reducing the emissions from fossil 
        fuel-fired electric generating units;
            (2) to reduce the impact of climate change by limiting 
        emissions of carbon dioxide;
            (3) to enhance human and wildlife health by limiting 
        emissions of mercury; and
            (4) to develop and promote sources of clean energy that do 
        not require the burning of fossil fuels.

SEC. 102. MERCURY AND CARBON DIOXIDE EMISSIONS REDUCTIONS.

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

           ``TITLE VII--MERCURY AND CARBON DIOXIDE REDUCTIONS

``Sec. 701. Definitions.
``Sec. 702. Mercury reduction program.
``Sec. 703. Carbon dioxide trading program.
``Sec. 704. Prohibitions.
``Sec. 705. Effect on other law.

``SEC. 701. DEFINITIONS.

    ``In this title:
            ``(1) Affected unit.--The term `affected unit' means a 
        coal-fired electric generating facility (including a 
        cogeneration facility) that--
                    ``(A) has a nameplate capacity greater than 25 
                megawatts; and
                    ``(B) generates electricity for sale.
            ``(2) Cogeneration facility.--The term `cogeneration 
        facility' means a facility that--
                    ``(A) cogenerates--
                            ``(i) steam; and
                            ``(ii) electricity; and
                    ``(B) supplies, on a net annual basis, to any 
                utility power distribution system for sale--
                            ``(i) more than \1/3\ of the potential 
                        electric output capacity of the facility; and
                            ``(ii) more than 25 megawatts of electrical 
                        output of the facility.

``SEC. 702. MERCURY REDUCTION PROGRAM.

    ``(a) New Unit Requirement.--Any affected unit that commences 
operation after December 31, 2008, shall be considered a new unit for 
the purposes of this section and shall not exceed the emission limit of 
0.6 pounds mercury per trillion Btu (0.6 lb Hg/TBtu) upon commencement 
of operation.
    ``(b) Existing Unit Requirement.--Any affected unit that commences 
operation on or before December 31, 2008, shall not exceed the emission 
limit of 0.6 pounds mercury per trillion Btu by January 1, 2011.
    ``(c) Monitoring System.--Not later than January 1, 2009, the 
Administrator shall promulgate regulations requiring operation, 
reporting and certification of continuous emissions monitoring systems 
(CEMS) to accurately measure the quantity of mercury that is emitted 
from each affected unit.
    ``(d) Excess Emissions.--
            ``(1) In general.--The owner or operator of an affected 
        unit that emits mercury in excess of the emission limitation 
        described in subsections (b) and (c) shall pay an excess 
        emissions penalty determined under paragraph (2).
            ``(2) Determination of excess emissions penalty.--The 
        excess emissions penalty shall be an amount equal to $10,000 
        for each ounce of mercury emitted in excess of the emission 
        limitations for mercury described in subsections (b) and (c).
    ``(e) Prevention of Mercury Re-Release.--Not later than January 1, 
2009, the Administrator shall promulgate regulations to ensure that any 
mercury captured or recovered by emission controls installed at an 
affected unit is not re-released into the environment.

``SEC. 703. CARBON DIOXIDE TRADING PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Allowance.--The term `allowance' mean a carbon 
        dioxide allowance equivalent to emitting one ton of carbon 
        dioxide during the year that it was issued or any subsequent 
        year.
            ``(2) Renewable energy.--The term `renewable energy' means 
        electricity generated from--
                    ``(A) wind;
                    ``(B) organic waste (excluding incinerated 
                municipal solid waste);
                    ``(C) biomass (including anaerobic digestion from 
                farm systems and landfill gas recovery);
                    ``(D) fuel cells; or
                    ``(E) a hydroelectric, geothermal, solar thermal, 
                photovoltaic, or other nonfossil fuel, nonnuclear 
                source.
    ``(b) Carbon Dioxide Emission Levels for 2015, 2020, 2030, 2040, 
and 2050.--
            ``(1) By January 1, 2015, carbon dioxide emission levels 
        for affected units shall not exceed the level of carbon dioxide 
        emissions for affected units in 2005.
            ``(2) By January 1, 2020, carbon dioxide emission levels 
        for affected units shall not exceed 75 percent of the level of 
        carbon dioxide emissions for affected units in 2005.
            ``(3) By January 1, 2030, carbon dioxide emission levels 
        for affected units shall not exceed 50 percent of the level of 
        carbon dioxide emissions for affected units in 2005.
            ``(4) By January 1, 2040, carbon dioxide emission levels 
        for affected units shall not exceed 35 percent of the level of 
        carbon dioxide emissions for affected units in 2005.
            ``(5) By January 1, 2050, carbon dioxide emission levels 
        for affected units shall not exceed 20 percent of the level of 
        carbon dioxide emissions for affected units in 2005.
    ``(c) Regulations.--
            ``(1) In general.--Not later than January 1, 2010, the 
        Administrator shall promulgate regulations to establish an 
        allowance trading program for affected units in the United 
        States.
            ``(2) Required elements.--Regulations promulgated under 
        paragraph (1) shall establish requirements for the carbon 
        dioxide allowance trading program under this section, including 
        requirements concerning--
                    ``(A) the issuance, auction, and use of carbon 
                dioxide allowances. Such allowances shall be--
                            ``(i) 100 percent auctioned; and
                            ``(ii) the proceeds of such auction shall 
                        be deposited into a special fund jointly 
                        administered by the Department of Energy and 
                        Environmental Protection Agency to fund 
                        research and development of renewable energy 
                        projects.
                    ``(B) the transfer of allowances;
                    ``(C) the monitoring, tracking and reporting of 
                carbon dioxide allowances; and
    ``(d) Compliance and Enforcement.--
            ``(1) In general.--For calendar year 2015 and each calendar 
        year thereafter, the owner of each affected unit shall 
        surrender to the Administrator a quantity of allowances that is 
        equal to the total tons of carbon dioxide emitted by the 
        affected unit during the calendar year.
            ``(2) Penalty.--The owner of an affected unit that emits 
        carbon dioxide in excess of the allowances that the owner holds 
        for use for the affected unit for the calendar year shall pay 
        an excess emissions penalty equal to the product obtained by 
        multiplying--
                    ``(A) the number of tons of carbon dioxide emitted 
                inexcess of the total quantity of allowances held; and
                    ``(B) $150, adjusted for changes in the Consumer 
                Price Index for All-Urban Consumers published by the 
                Department of Labor.
    ``(e) Allowance Not a Property Right.--An allowance--
            ``(1) is not a property right; and
            ``(2) may be terminated or limited by the Administrator.
    ``(f) No Judicial Review.--An auction or issuance of an allowance 
by the Administrator shall not be subject to judicial review.

``SEC. 704. 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;
                    ``(C) to fail to provide and comply with any plan 
                to offset excess emissions; or
                    ``(D) to emit mercury in excess of the emission 
                limitations established under section 702; 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. 705. EFFECT ON OTHER LAW.

    ``Nothing in this title--
            ``(1) affects the ability of a State to take State actions 
        to further limit climate change (except that section 209 shall 
        apply to standards for vehicles); and
            ``(2) except as expressly provided in this title--
                    ``(A) modifies or otherwise affects any requirement 
                of this Act in effect on the day before the date of 
                enactment of this title; or
                    ``(B) relieves any person of the responsibility to 
                comply with this Act.''.

SEC. 103. PROTECTING SENSITIVE REGIONAL ECOSYSTEMS.

    (a) Report.--
            (1) In general.--Not later than December 31, 2010, the 
        Administrator shall submit to Congress a report identifying 
        objectives for scientifically credible environmental 
        indicators, as determined by the Administrator, that are 
        sufficient to protect and restore sensitive ecosystems of the 
        Adirondack Mountains, mid-Appalachian Mountains, Catskill 
        Mountains, Rocky Mountains, and Southern Blue Ridge Mountains 
        and water bodies of the Great Lakes, Lake Champlain, Long 
        Island Sound, the Chesapeake Bay and other sensitive 
        ecosystems, as determined by the Administrator.
            (2) Updated report.--Not later than December 31, 2019, the 
        Administrator shall submit to Congress a report updating the 
        report under paragraph (1) and assessing the status and trends 
        of various environmental objectives and indicators for the 
        sensitive regional ecosystems referred to in paragraph (1).
            (3) Reports under the national acid precipitation 
        assessment program.--The reports under this subsection shall be 
        subject to the requirements applicable to a report under 
        section 103(j)(3)(E) of the Clean Air Act (42 U.S.C. 
        7403(j)(3)(E)).
    (b) Regulations.--
            (1) Determination.--Not later than December 31, 2019, the 
        Administrator shall determine whether emissions reductions 
        under title VII of the Clean Air Act are sufficient to ensure 
        achievement of the objectives stated in subsection (a)(1).
            (2) Promulgation.--If the Administrator determines under 
        paragraph (1) that emissions reductions under title VII of the 
        Clean Air Act are not sufficient to ensure achievement of the 
        objectives identified in subsection (a)(1), the Administrator 
        shall promulgate, not later than 2 years after making the 
        finding, such regulations, including modification of nitrogen 
        oxide and sulfur dioxide allowance allocations or any such 
        measure, as the Administrator determines are necessary to 
        protect the sensitive ecosystems described in subsection 
        (a)(1).

SEC. 104. AUTHORIZATION OF APPROPRIATIONS.

    In addition to amounts made available under any other law, there 
are authorized to be appropriated for each of fiscal years 2008 through 
2018--
            (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.

SEC. 105. MODERNIZATION.

    (a) Authorization of Appropriations.--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.
    (b) Availability of Amounts.--Each of the amounts appropriated 
under subsection (b) shall remain available until expended.

         TITLE II--SULFUR DIOXIDE AND NITROGEN OXIDE EMISSIONS

SEC. 201. REDUCTION OF EMISSIONS FROM POWERPLANTS.

    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:

``SEC. 132. REDUCTION OF EMISSIONS FROM POWERPLANTS.

    ``(a) Emission Reduction Objectives.--The emission reduction 
objectives of this section are to reduce, not later than January 1, 
2010:
            ``(1) aggregate sulfur dioxide emissions from powerplants 
        by 75 percent from the levels allowed under full implementation 
        of the Phase II sulfur dioxide requirements under title IV 
        (relating to acid deposition control); and
            ``(2) aggregate nitrogen oxide emissions from powerplants 
        by 75 percent from 1997 levels.
    ``(b) Agency Action.--
            ``(1) Regulations.--
                    ``(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).
                    ``(B) Elements.--The regulations promulgated under 
                subparagraph (A)--
                            ``(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;
                            ``(ii) may include market-oriented 
                        mechanisms (such as emissions trading based on 
                        generation performance standards, auctions, or 
                        other allocation methods);
                            ``(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 of the United States;
                            ``(iv) shall, include, consistent with 
                        achieving the objectives set forth in 
                        subsection (a), incentives for renewable 
                        energy.
            ``(2) Interagency coordination to minimize costs and 
        maximize gains.--To minimize the economic costs and maximize 
        the economic gains of achieving the emission reduction 
        objectives specified in subsection (a), the Administrator shall 
        coordinate with other departments and agencies of Federal and 
        State government to increase energy efficiency, to increase the 
        use of renewable energy, and to implement cost saving advanced 
        demand and supply side policies, such as those described in the 
        report prepared by the Interlaboratory Working Group of the 
        Department of Energy entitled `Scenarios for a Clean Energy 
        Future', dated November 2000.
    ``(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.
    ``(d) Modernization of Outdated Powerplants.--
            ``(1) In general.--On the later of the date that is 30 
        years after a powerplant commenced operation or the date that 
        is 5 years after the date of enactment of this section, it 
        shall comply with--
                    ``(A) the most recent new source performance 
                standards promulgated under section 111; and
                    ``(B) the requirements under parts C and D that are 
                applicable to modified sources.
            ``(2) Additional requirements.--The requirements of this 
        subsection shall be in addition to the requirements of the 
        regulations promulgated under subsection (b).
    ``(e) Other Requirements.--The requirements of this section shall 
be in addition to, and not in lieu of, any other requirement of this 
Act.
    ``(f) Definition.--In this section, the term `powerplant' means an 
electric generation facility with a nameplate capacity of 25 megawatts 
or more that uses a combustion device to generate electricity for 
sale.''.
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