1.This Act may be cited as the
Clean Air Planning Act of
2007
.
2.
(a)Congress
finds that—
(1)in 1992, the
Unites States became a signatory to the United Nations Framework Convention on
Climate Change, done at New York on May 9, 1992, in recognition of the need to
begin to reverse the adverse effects of global warming by decreasing greenhouse
gas emission levels to 1990 levels;
(2)fossil fuel-fired
electric generating facilities, consisting of facilities fueled by coal, fuel
oil, and natural gas, produce nearly 2/3 of the
electricity generated in the United States;
(3)fossil fuel-fired
electric generating facilities produce approximately 67 percent of the total
sulfur dioxide emissions, 23 percent of the total nitrogen oxides emissions, 40
percent of the total carbon dioxide emissions, and 40 percent of the total
mercury emissions, in the United States;
(4)(A)in 1977, in amending
the Clean Air Act (42 U.S.C. 7401 et seq.), Congress sought to prevent adverse
impacts caused by manmade pollution on national parks and wilderness areas
designated as class I areas under section 162(a) of that Act (42 U.S.C.
7472(a));
(B)as of the date of enactment of this
Act—
(i)many class I areas are impaired by
haze pollution;
(ii)the ecosystems of many class I
areas are impacted by deposits of acidic and toxic compounds; and
(iii)the air quality of many class I
areas fails to meet national ambient air quality standards; and
(C)(i)fossil-fuel fired
electric generating units are the major source of air pollution impacting class
I areas; and
(ii)proposed new fossil-fuel fired
electric generating units threaten to increase air pollution in class I areas
throughout the United States;
(5)(A)on implementing an acid
rain program in 1990, the Administrator of the Environmental Protection Agency
(referred to in this subsection as the Administrator)
overestimated the actual cost of sulfur dioxide permits by more than a factor
of 5; and
(B)after years of carrying out the
program, the Administrator acknowledged that independent studies show
that real life experiences with the program reveal greater cost savings than
initially expected, due in large part to the efficiencies achieved through
emissions trading
;
(6)(A)nearly
3/4 of all powerplant boilers in operation on the date of
enactment of this Act are more than 30 years old, and most continue to operate
without modern pollution control technology; and
(B)those older powerplants release
approximately 99 percent of the sulfur dioxide, 98 percent of the nitrogen
oxides, and 91 percent of the carbon dioxide emitted from all
powerplants;
(7)(A)many electric
generating facilities have been exempt from the emission limitations applicable
to new units based on the expectation that over time the units would be retired
or updated with new pollution control equipment; but
(B)many of the exempted units continue to
operate and emit pollutants at relatively high rates;
(8)according to the
analysis by the Administrator of the rule of the Administrator entitled the
Clean Air Interstate Rule
(70 Fed. Reg. 25162 (May 12, 2005)),
the majority of the 1,168 outdated coal-fired powerplant boilers in operation
in the eastern United States on the date of enactment of this Act will operate
without sulfur dioxide scrubbers and advanced nitrogen oxide controls even
after the implementation of that rule is completed in 2020, such that—
(A)858 plants will
operate without sulfur dioxide scrubbers; and
(B)915 powerplants
will operate without advanced nitrogen oxide controls;
(9)according to the
Energy Outlook for 2006 of the Energy Information Administration, carbon
dioxide emissions from electric generating units in the Unites States have
increased by 32 percent during the period of 1990 through 2006;
(10)the deployment
by the electric utility sector of zero- and low-emitting generation
technologies should be accelerated given the increase in carbon dioxide
emissions from the electric utility sector described in paragraph (9);
(11)the ability of
owners of electric generating facilities to plan effectively for the future is
impeded by the uncertainties surrounding future environmental regulatory
requirements that are imposed inefficiently on a piecemeal basis;
(12)many owners of
electric generating units have failed—
(A)to install best
available control technology for emissions reductions; and
(B)to retire the
units, as anticipated by Congress in the new source review provisions of the
prevention of significant deterioration and nonattainment programs of the Clean
Air Act (42 U.S.C. 7401 et seq.);
(13)according to the
Administrator, many owners of electric generating units carried out projects to
extend the economic lives of the units without upgrading the emission controls
of the units to best available control technology levels;
(14)according to the
National Energy Technology Laboratory of the Department of Energy—
(A)as of the date of
enactment of this Act, 159 new coal-fired electric generating units are
proposed to be constructed, which would produce 96 gigawatts of new electric
generating capacity; and
(B)if the units
described in subparagraph (A) are constructed, the units would produce—
(i)an
incremental increase of 500,000,000 tons of carbon dioxide per year from the
production by the power sector in the United States as in existence on the date
of enactment of this Act; and
(ii)an
estimated 30,000,000,000 additional tons of carbon dioxide over the course of
the useful lives of the units (assuming a lifespan of 60 years);
(15)total emissions
of carbon dioxide from the United States should be on a reduction pathway to
achieve a 60 percent to 80 percent reduction from current levels by
2050;
(16)pollution from
electric generating facilities in existence on the date of enactment of this
Act can be reduced through the adoption of modern technologies and
practices;
(17)a report of the
Congressional Budget Office, dated September 19, 2006, concluded that—
(A)relying
exclusively on research and development funding is not the most effective
strategy for reducing greenhouse gas emissions; and
(B)combining
research and development funding with a gradually-increasing limitation on
emissions is a more cost-effective approach;
(18)(A)agriculture can be part
of the solution to reducing greenhouse gas emissions;
(B)less productive agricultural land can
be reforested with carbon dioxide-consuming trees;
(C)farming practices can be improved to
increase the absorption and retention of carbon in agricultural soils;
(D)biomass from agricultural sources
(including corn and grass) could be used to produce biofuels that can take the
place of high-carbon fossil fuels used in transportation and power generation;
and
(E)many of the farming practices and land
use changes involved in achieving those reductions have multiple benefits,
including—
(i)improving soil, water, and air
quality;
(ii)increasing wildlife habitat;
and
(iii)providing additional recreational
opportunities; and
(19)States and
regions have increasingly adopted programs to address carbon dioxide emissions
from electric generating facilities, and Federal regulations relating to carbon
dioxide emissions should take those programs into consideration.
(b)The
purposes of this Act are—
(1)to protect and
preserve the environment and safeguard public health by ensuring that
substantial emission reductions are achieved at fossil fuel-fired electric
generating facilities;
(2)to reduce
significantly the quantities of mercury, carbon dioxide, sulfur dioxide, and
nitrogen oxides that enter the environment as a result of the combustion of
fossil fuels;
(3)to ensure that
air quality of national parks and all other class I areas (as designated by
section 162(a) of the Clean Air Act (42 U.S.C. 7472(a))) impacted by emissions
from fossil-fuel fired electric generating units is significantly improved by
2016, the year in which the National Park System celebrates its 100th
anniversary;
(4)to encourage the
development and use of renewable energy;
(5)to internalize
the cost of protecting the values of public health, air, land, and water
quality;
(6)to provide a
period of environmental regulatory stability for owners and operators of
electric generating facilities so as to promote improved management of existing
assets and new capital investments;
(7)to achieve
emission reductions from electric generating facilities in a cost-effective
manner;
(8)to establish a
mandatory cap-and-trade system for the electric power sector that is part of an
economy-wide national greenhouse gas trading market;
(9)to provide for
the future integration of additional sectors of the economy into such a
greenhouse gas trading market; and
(10)to establish a
regulatory system that, by 2050, will allow for a reduction in United States
greenhouse gas emissions to a level of approximately 20 percent to 40 percent
of levels of emissions as of the date of enactment of this Act.
3.Integrated air
quality planning for the electric generating sectorThe Clean Air
Act (42
U.S.C. 7401 et seq.) is amended by adding at the end the
following:
<enum>VII</enum><header>Integrated air
quality planning for the electric generating sector</header>
<toc>
<toc-entry idref="ID339D81847EC34A29B235FD728053D62C" level="title">TITLE VII—Integrated air quality planning for the electric
generating sector</toc-entry>
<toc-entry idref="ID45BCD3C2CB704F39ADDFA3A6BBE8CFAC" level="section">Sec. 701. Definitions.</toc-entry>
<toc-entry idref="ID671AA711994B41AFAF8E3F2DF71C67FD" level="section">Sec. 702. National pollutant tonnage limitations.</toc-entry>
<toc-entry idref="ID873E9154DE204BFCBF3CB495F1C05C4C" level="section">Sec. 703. Nitrogen oxide trading program.</toc-entry>
<toc-entry idref="IDFEE47B554081405091B048A6FE003B75" level="section">Sec. 704. Mercury program.</toc-entry>
<toc-entry idref="id937C5B3664934B2A9DA1C1578B149E76" level="section">Sec. 705. Carbon dioxide allowance trading program.</toc-entry>
<toc-entry idref="ID1aa1022958624b1f8305e606543c8482" level="section">Sec. 706. Distribution of allowances between auctions and
allocations; nature of allowances.</toc-entry>
<toc-entry idref="IDc5461d8bf2a24fadafa3be0762ecab22" level="section">Sec. 707. Auction of allowances.</toc-entry>
<toc-entry idref="IDda44463e0a13409f835f1e9d2eb660ca" level="section">Sec. 708. Climate Action Trust Fund.</toc-entry>
</toc>
<section id="ID45BCD3C2CB704F39ADDFA3A6BBE8CFAC"><enum>701.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title:</text>
<paragraph id="ID57A59207E7834362B52F552431BE3775"><enum>(1)</enum><header>Affected
unit</header>
<subparagraph id="id4B785CD81D5F44879106E6A19EB44D87"><enum>(A)</enum><header>Carbon
dioxide</header>
<clause commented="no" id="idEDF9B44473E942FE98354E1DE2929BDB"><enum>(i)</enum><header>In
general</header><text>The term <term>affected unit</term>, with respect to
carbon dioxide, means a fossil fuel-fired electric generating facility
(including a cogeneration facility) that—</text>
<subclause commented="no" id="id575085873F0A4803AB85D3C44F190D4E"><enum>(I)</enum><text>on or after
January 1, 1985, served as a generator with a nameplate capacity greater than
25 megawatts; and</text>
</subclause><subclause commented="no" id="id6B2005225CDB429E878BB99B3EE3D2D7"><enum>(II)</enum><text>produces
electricity for sale.</text>
</subclause></clause><clause commented="no" id="id53C57C9DAC3947FF9C012CDDD8C615FC"><enum>(ii)</enum><header>Inclusion</header><text>The
term <term>affected unit</term>, with respect to nuclear facilities, includes
only incremental nuclear generation facilities.</text>
</clause></subparagraph><subparagraph commented="no" id="ID84078372EE7B41EAB65837DD2F7B68B8"><enum>(B)</enum><header>Mercury</header><text>The
term <term>affected unit</term>, with respect to mercury, means a coal-fired
electric generating facility (including a cogeneration facility) that—</text>
<clause commented="no" id="idFA68CD2B5D484EF0B4C7D4C821E3BD26"><enum>(i)</enum><text>on or after
January 1, 1985, served as a generator with a nameplate capacity greater than
25 megawatts; and</text>
</clause><clause commented="no" id="id5CA580A942B34FC696BE7C34A4ED61CC"><enum>(ii)</enum><text>produces
electricity for sale.</text>
</clause></subparagraph><subparagraph id="IDBD98C17291C04B68AD38F6D5A7F300C3"><enum>(C)</enum><header>Nitrogen
oxides</header><text>The term <term>affected unit</term>, with respect to
nitrogen oxides, means a fossil fuel-fired electric generating facility
(including a cogeneration facility) that—</text>
<clause commented="no" id="idBC48DC670DA949F49E466AEE60D8B1BE"><enum>(i)</enum><text>on or after
January 1, 1985, served as a generator with a nameplate capacity greater than
25 megawatts; and</text>
</clause><clause commented="no" id="id15535D9478644605B6ADE56B1044062B"><enum>(ii)</enum><text>produces
electricity for sale.</text>
</clause></subparagraph><subparagraph id="ID02692050DD594C5695275D0029FDFBF0"><enum>(D)</enum><header>Sulfur
dioxide</header><text>The term <term>affected unit</term>, with respect to
sulfur dioxide, has the meaning given the term in section 402.</text>
</subparagraph></paragraph><paragraph id="IDED64499FEC464663001873159F5B2044"><enum>(2)</enum><header>Carbon dioxide
allowance</header><text>The term <term>carbon dioxide allowance</term> means an
authorization allocated by the Administrator under this title to emit 1 ton of
carbon dioxide during or after a specified calendar year.</text>
</paragraph><paragraph id="IDf0e94a8b3df94fb99c00d24e247560fb"><enum>(3)</enum><header>Cogeneration
facility</header><text>The term <term>cogeneration facility</term> means a
facility that—</text>
<subparagraph id="id76EAFBD019124C2CB1B79A1B0DF37CFC"><enum>(A)</enum><text>cogenerates—</text>
<clause id="id6D67DA1DF0914BDAA6AD2D87BDBED386"><enum>(i)</enum><text>steam; and</text>
</clause><clause id="id1432C67B15DE40D3B2078A9421783DB7"><enum>(ii)</enum><text>electricity;
and</text>
</clause></subparagraph><subparagraph id="idEB88C809A3F445B1912BC1EFFE990B37"><enum>(B)</enum><text>supplies, on a
net annual basis, to any utility power distribution system for sale—</text>
<clause id="id2DEBC8912E6B41729526AF5CC6BAC7F0"><enum>(i)</enum><text>more than
<fraction>1/3</fraction> of the potential electric output capacity of the
facility; and</text>
</clause><clause id="idEEBAC3A5A55C4472A1C60FA93FD597E3"><enum>(ii)</enum><text>more than
219,000 megawatt-hours of electrical output.</text>
</clause></subparagraph></paragraph><paragraph id="id35CC13921777485492F9DEBAF7F792AE"><enum>(4)</enum><header>Covered
unit</header><text>The term <term>covered unit</term> means—</text>
<subparagraph id="IDb03db898c47f452da39b1e6342ce44ac"><enum>(A)</enum><text>an affected
unit;</text>
</subparagraph><subparagraph id="ID45f2d8f291cc4e999ac125b39aa55bdd"><enum>(B)</enum><text>with respect to
incremental nuclear generation, a nuclear generating unit; and</text>
</subparagraph><subparagraph id="ID1115a535435f4d4cbfa4290465a43b1b"><enum>(C)</enum><text>a renewable
energy unit.</text>
</subparagraph></paragraph><paragraph id="idB6DEA55B58DE4ADF9D8F9920592A321D"><enum>(5)</enum><header>Fossil
fuel-fired</header><text>The term <term>fossil fuel-fired</term>, with respect
to an electric generating facility, means the combustion of fossil fuel by the
electric generating facility, alone or in combination with any other fuel, in
any case in which the fossil fuel combusted comprises, or is projected to
comprise, more than 20 percent of the annual heat input of the electric
generating facility, on a Btu basis, during any calendar year.</text>
</paragraph><paragraph id="idA9B5BAA42438488396167EA6BD0BDFA2"><enum>(6)</enum><header>Fund</header><text>The
term <term>Fund</term> means the Climate Action Trust Fund established by
section 708(a)(1).</text>
</paragraph><paragraph id="ID8CA9F25E23144C3395A860424B36CD69"><enum>(7)</enum><header>Greenhouse
gas</header><text>The term <term>greenhouse gas</term> means—</text>
<subparagraph id="ID26ECBC6859CB428EAC4C9B37379B018D"><enum>(A)</enum><text>carbon
dioxide;</text>
</subparagraph><subparagraph id="IDB93CD20D62C247E8B94B9C83D753BC33"><enum>(B)</enum><text>methane;</text>
</subparagraph><subparagraph id="ID147FB4FC6D5F4B50B83876BFC5BC0026"><enum>(C)</enum><text>nitrous
oxide;</text>
</subparagraph><subparagraph id="IDF77B35983DDF4E4AAA1D6CBF00C3994E"><enum>(D)</enum><text>hydrofluorocarbons;</text>
</subparagraph><subparagraph id="ID53CB9DB6382F4AB0A40075F720A76628"><enum>(E)</enum><text>perfluorocarbons;
and</text>
</subparagraph><subparagraph id="ID0CB3F1D860414982A422C229005C3158"><enum>(F)</enum><text>sulfur
hexafluoride.</text>
</subparagraph></paragraph><paragraph id="ID3BE59C45E6464342BB59A810D39D31B9"><enum>(8)</enum><header>Incremental
nuclear generation</header><text>The term <term>incremental nuclear
generation</term> means, as determined by the Administrator and measured in
megawatt hours, the difference between—</text>
<subparagraph id="IDE0AA41A2565C4F21902CA9008CEB9DE2"><enum>(A)</enum><text>the quantity of
electricity generated by a nuclear generating unit in a calendar year;
and</text>
</subparagraph><subparagraph commented="no" id="IDE2F179E7F5F041A5ABF98D7278C4194F"><enum>(B)</enum><text>the quantity of
electricity generated by the nuclear generating unit in calendar year
1990.</text>
</subparagraph></paragraph><paragraph id="ID25DB750C4D0C449AAD01D9408408C4AB"><enum>(9)</enum><header>New
unit</header><text>The term <term>new unit</term> means an affected unit that
has operated for not more than 3 years and is not eligible to receive—</text>
<subparagraph id="ID1C59844D18364CF7A7BABD396B88B0D6"><enum>(A)</enum><text>sulfur dioxide
allowances under section 417(b);</text>
</subparagraph><subparagraph id="ID3DB4C1BBC85C44E7A5009499E8DFD3FC"><enum>(B)</enum><text>nitrogen oxide
allowances under section 703(c)(2); or</text>
</subparagraph><subparagraph id="ID977933551E2E4441A09BBD99EE20AAF8"><enum>(C)</enum><text>carbon dioxide
allowances under section 705(d).</text>
</subparagraph></paragraph><paragraph id="IDF87E3C4982F444C9B6B4ED383DB6C7EB"><enum>(10)</enum><header>Nitrogen oxide
allowance</header><text>The term <term>nitrogen oxide allowance</term> means an
authorization allocated by the Administrator under this title to emit 1 ton of
nitrogen oxides during or after a specified calendar year.</text>
</paragraph><paragraph id="IDd77e2d7156914576a24868885f40f650"><enum>(11)</enum><header>Nuclear
generating unit</header><text>The term <term>nuclear generating unit</term>
means an electric generating facility that—</text>
<subparagraph id="IDe775c11f2fbb462f9abe109cbeeec7e3"><enum>(A)</enum><text>uses nuclear
energy to supply electricity to the electric power grid; and</text>
</subparagraph><subparagraph id="ID3649260009004069a9f6622e6f6bdc1d"><enum>(B)</enum><text>entered operation
in calendar year 1990 or earlier.</text>
</subparagraph></paragraph><paragraph id="ID94cae0b61dc6456588716a1e1d662162"><enum>(12)</enum><header>Renewable
energy</header><text>The term <term>renewable energy</term> means electric
energy generated from solar energy, wind, hydroelectric energy, biomass,
landfill gas, ocean energy (including tidal, wave, current, and thermal
energy), or geothermal energy.</text>
</paragraph><paragraph id="IDDB594990D49E4057AB3D57305620105D"><enum>(13)</enum><header>Sequestration</header><text>The
term <term>sequestration</term> means the action of sequestering carbon
by—</text>
<subparagraph id="IDE7D4B5AAB55B4E28B58411F200041D61"><enum>(A)</enum><text>enhancing a
natural carbon sink (such as through afforestation); or</text>
</subparagraph><subparagraph id="ID0F0630DCD69C400886B623E8A8064C00"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="ID04DB0E9FF558455400A8347221FE93DB"><enum>(i)</enum><text>capturing the carbon
dioxide emitted from a fossil fuel-based energy system; and</text>
</clause><clause id="ID641E094FDF8B4042AA749C646F68451D" indent="up1"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="IDF3C3939E6F7F4F9C9F8E9288008638CB"><enum>(I)</enum><text>storing the carbon in a
geologic formation for not less than 300 years in a manner that prevents any
release of the carbon dioxide in a quantity greater than 1 percent of the total
quantity so stored; or</text>
</subclause><subclause id="ID1DBBE62ED122431CBB360668045E2518" indent="up1"><enum>(II)</enum><text>converting the carbon to a benign
solid material through a biological or chemical process.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="ID950C613EDCC54F90BE42757F1EC859F9"><enum>(14)</enum><header>Sulfur dioxide
allowance</header><text>The term <term>sulfur dioxide allowance</term> has the
meaning given the term <term>allowance</term> in section 402.</text>
</paragraph></section><section id="ID671AA711994B41AFAF8E3F2DF71C67FD"><enum>702.</enum><header>National
pollutant tonnage limitations</header>
<subsection id="ID370177DCFDE9400682EAA2C157070014"><enum>(a)</enum><header>Sulfur
dioxide</header><text>The annual tonnage limitation for emissions of sulfur
dioxide from affected units in the United States shall be equal to—</text>
<paragraph id="ID72B38329FE2D4760BD2FFDDF6433DAB2"><enum>(1)</enum><text>for each of
calendar years 2012 through 2014, 3,500,000 tons; and</text>
</paragraph><paragraph commented="no" id="ID25416B2E30224032BCDD9013D634FAF8"><enum>(2)</enum><text>for calendar year
2015 and each calendar year thereafter, 2,000,000 tons.</text>
</paragraph></subsection><subsection id="ID507A95D1BCBD4927BF5B126E7D818B03"><enum>(b)</enum><header>Nitrogen
oxides</header>
<paragraph id="id8F95504155564675AB33ECD12DBCBBBB"><enum>(1)</enum><header>Definitions</header><text>In
this subsection:</text>
<subparagraph id="id3AD47235B96E4D9485C58A45B2CF929E"><enum>(A)</enum><header>Zone 1
State</header><text>The term <term>Zone 1 State</term> means the District of
Columbia or any of the States of Alabama, Arkansas, Connecticut, Delaware,
Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine,
Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, New
Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode
Island, South Carolina, Tennessee, Texas, Vermont, Virginia, West Virginia, and
Wisconsin.</text>
</subparagraph><subparagraph id="id097171941BEA40BE9A0E689794136ECE"><enum>(B)</enum><header>Zone 2
State</header><text>The term <term>Zone 2 State</term> means any State within
the 48 contiguous States that is not a Zone 1 State.</text>
</subparagraph></paragraph><paragraph id="idE8171880B51046528D611C39C628F3F3"><enum>(2)</enum><header>Applicability</header>
<subparagraph id="ID56871669723341459FE6209C01EA5FBC"><enum>(A)</enum><header>Zone 1
Prohibition</header>
<clause id="ID3CD0440EB334431BA55D0AB0A85D1677"><enum>(i)</enum><header>In
general</header><text>Beginning on January 1, 2012, it shall be unlawful for an
affected unit in a Zone 1 State to emit a total amount of nitrogen oxides
during a year in excess of the number of nitrogen oxide allowances held for the
affected unit for that year by the owner or operator of the affected
unit.</text>
</clause><clause id="IDF1FDDD1EB4484FB8B5EB80270D6FBCEA"><enum>(ii)</enum><header>Limitation</header><text>Only
nitrogen oxide allowances under paragraph (3)(A) shall be held in order to meet
the requirements of clause (i).</text>
</clause></subparagraph><subparagraph id="ID6A5558541DDE47BB99E5E0D1A1AC4FD2"><enum>(B)</enum><header>Zone 2
Prohibition</header>
<clause id="ID3E8A7FB08DE34D098D45C283DBF5DD88"><enum>(i)</enum><header>In
general</header><text>Beginning on January 1, 2012, it shall be unlawful for an
affected unit in a Zone 2 State to emit a total amount of nitrogen oxides
during a year in excess of the number of nitrogen oxide allowances held for the
affected unit for that year by the owner or operator of the affected
unit.</text>
</clause><clause id="ID6C9DAA2BFD1C486595923DC3A9AF111C"><enum>(ii)</enum><header>Limitation</header><text>Only
nitrogen oxide allowances under paragraph (3)(B) shall be held in order to meet
the requirements of clause (i).</text>
</clause></subparagraph></paragraph><paragraph id="id4B4D0476D3434B0D9CCC6F1608442F17"><enum>(3)</enum><header>Limitations on
total emissions</header>
<subparagraph id="idD6B0FBE9A1464E77BC72542BB868A156"><enum>(A)</enum><header>Zone 1
limitations</header><text>The Administrator shall allocate an annual tonnage
limitation for emissions of nitrogen oxides from affected units in the Zone 1
States in an amount equal to—</text>
<clause id="ID23C43074184B450790468708D3AADE4F"><enum>(i)</enum><text>for each of
calendar years 2012 through 2014, 1,390,000 tons; and</text>
</clause><clause commented="no" id="IDB7218AC7ADDC4E938B3D852E007D5CBA"><enum>(ii)</enum><text>for calendar
year 2015 and each calendar year thereafter, 1,300,000 tons.</text>
</clause></subparagraph><subparagraph id="idCC24B1497E1F4327BC50E82E38771C5D"><enum>(B)</enum><header>Zone 2
limitations</header><text>The Administrator shall allocate an annual tonnage
limitation for emissions of nitrogen oxides from affected units in the Zone 2
States in an amount equal to—</text>
<clause id="id4C5F60024FC840FDB3EBB31496B993B8"><enum>(i)</enum><text>for each of
calendar years 2012 through 2014, 400,000 tons; and</text>
</clause><clause commented="no" id="id92561860072945B7B5C38A75C4033D9F"><enum>(ii)</enum><text>for calendar
year 2015 and each calendar year thereafter, 320,000 tons.</text>
</clause></subparagraph></paragraph></subsection><subsection id="ID3FD408A55B6F407CB125FC19635335C4"><enum>(c)</enum><header>Mercury</header><text>The
emission of mercury from affected units shall be limited in accordance with
section 704.</text>
</subsection><subsection id="id4124C4CFEA2149A9AA6A81057C8FB316"><enum>(d)</enum><header>Carbon
dioxide</header>
<paragraph id="id08314C18F73B4C659AA15F845B716CA6"><enum>(1)</enum><header>In
general</header><text>The annual tonnage limitation for emissions of carbon
dioxide from affected units in the United States shall be equal to, as
determined by the Administrator based on certified and quality-assured
continuous emissions monitoring data for carbon dioxide reported to the
Administrator by affected units in accordance with this Act—</text>
<subparagraph id="IDa18f874a17314097803c998d1f7b6c1a"><enum>(A)</enum><text>for each of
calendar years 2012 through 2014, the quantity of emissions emitted from
affected units in calendar year 2006;</text>
</subparagraph><subparagraph id="IDf208c0256fd745189794ac9bc8ed7df0"><enum>(B)</enum><text>for calendar year
2015, the quantity of emissions emitted from affected units in calendar year
2001;</text>
</subparagraph><subparagraph id="ID55091625a6454c06acef32d4ab4c8519"><enum>(C)</enum><text>for each of
calendar years 2016 through 2019, the aggregate quantity of emissions emitted
from affected units during the calendar year that is 1 percent less than the
aggregate quantity of emissions from affected units allowed pursuant to this
section during the preceding calendar year; and</text>
</subparagraph><subparagraph id="IDc0215b5acfa14361bf6107e3d0040ac3"><enum>(D)</enum><text>for calendar year
2020 and each calendar year thereafter, the aggregate quantity of emissions
emitted during the calendar year that is 1.5 percent less than the aggregate
quantity of emissions from affected units allowed pursuant to this section
during the preceding calendar year.</text>
</subparagraph></paragraph><paragraph id="IDd532446e949d4ca0ade88cc2f92adccc"><enum>(2)</enum><header>Additional
limitations</header><text>For calendar year 2030 and each calendar year
thereafter, in accordance with subsection (e), the Administrator shall take
into consideration the practicability of increasing the reduction in emissions
of carbon dioxide required for the calendar year to at least 3 percent less
than the aggregate quantity of emissions emitted during the preceding calendar
year.</text>
</paragraph></subsection><subsection id="id2228EFB3128946888864C7262F8770E4"><enum>(e)</enum><header>Review of
annual tonnage limitations and mercury emissions requirements</header>
<paragraph id="id35471E5E5CF34126881823EB13C1E575"><enum>(1)</enum><header>Determination
by Administrator</header><text>Not later than 10 years after the date of
enactment of this title and every 10 years thereafter, the Administrator shall
determine—</text>
<subparagraph id="IDd9336d0459034018889aac236a573f62"><enum>(A)</enum><text>after considering
impacts on human health, the environment, the economy, and costs, whether 1 or
more of the annual tonnage limitations should be revised; and</text>
</subparagraph><subparagraph id="IDe106c35a9cbd4f24a0de93db3f10dda0"><enum>(B)</enum><text>whether the
mercury emission requirements under section 704 should be revised in accordance
with the risk standards described in section 112(f)(2).</text>
</subparagraph></paragraph><paragraph id="id82005F67E6D74F068C6BA9323F0E425F"><enum>(2)</enum><header>Determination
not to revise</header><text>If the Administrator determines under paragraph (1)
that no annual tonnage limitation or mercury emission requirement should be
revised, the Administrator shall publish in the Federal Register—</text>
<subparagraph id="id59838AC110744C439EEA2C723F076394"><enum>(A)</enum><text>a notice of the
determination; and</text>
</subparagraph><subparagraph id="id9FCC4C587A5F4C88B88569C06A6C4C73"><enum>(B)</enum><text>the reasons for
the determination.</text>
</subparagraph></paragraph><paragraph id="idB42297BC6FEE486AA2E4A27F712CFF4F"><enum>(3)</enum><header>Determination
to revise</header><text>If the Administrator determines under paragraph (1)
that 1 or more of the annual tonnage limitations or mercury emissions
requirements should be revised, the Administrator shall publish in the Federal
Register—</text>
<subparagraph id="IDc3f060e4190e40e7add216ae2786a0ab"><enum>(A)</enum><text>not later than 10
years and 180 days after the date of enactment of this title, proposed
regulations implementing the revisions; and</text>
</subparagraph><subparagraph id="IDc7497ae4c97b4e44abd0e0309912fd7e"><enum>(B)</enum><text>not later than 11
years and 180 days after the date of enactment of this title, final regulations
implementing the revisions.</text>
</subparagraph></paragraph><paragraph id="IDaecca07155b049ce9aafca1dc5af070e"><enum>(4)</enum><header>Administration</header><text>The
duty of the Administrator to make a determination under paragraph (1) shall
be—</text>
<subparagraph id="ID65ddfd879ffb4747b75cadf8261bfd03"><enum>(A)</enum><text>considered to be
a nondiscretionary duty;</text>
</subparagraph><subparagraph id="ID998bd41943de4c45ac11a9c130a398ca"><enum>(B)</enum><text>enforceable
through a citizen suit under section 304; and</text>
</subparagraph><subparagraph id="ID120a4f8825a24015a6046b690d5286a3"><enum>(C)</enum><text>subject to
rulemaking procedures and judicial review under section 307.</text>
</subparagraph></paragraph><paragraph id="idA961CD6812FF4A7C93602EB28D119387"><enum>(5)</enum><header>Requirement</header><text>No
revision of an annual tonnage limitation or mercury emission requirement under
this subsection shall result in a limitation or emission requirement that is
less stringent than an existing applicable requirement under this title.</text>
</paragraph></subsection><subsection id="IDFE13CB1780174EEB9BB7F0DDD7AE8DFC"><enum>(f)</enum><header>Reduction of
emissions from specified affected units</header><text>Notwithstanding the
annual tonnage limitations and mercury emissions requirements established under
this section, the Federal Government or a State government may require that
emissions from a specified affected unit be reduced.</text>
</subsection><subsection id="idB021705330374D149EA04FB7442EFCF9"><enum>(g)</enum><header>General
enforcement</header>
<paragraph id="id19247A4848F1425397257FEF46D38462"><enum>(1)</enum><header>In
general</header><text>It shall be unlawful for any individual or entity subject
to this title to violate any requirement or prohibition under this
title.</text>
</paragraph><paragraph id="idBBF477BA80724F47B781B7AC2FBCF43D"><enum>(2)</enum><header>Treatment of
excess emissions</header><text>In calculating any penalty for violation of this
title, each ton of emissions of sulfur dioxide, nitrogen oxides, mercury, or a
greenhouse gas emitted by a covered unit during a calendar year in excess of
the allowances held for use by the covered unit for the calendar year shall be
considered to be a separate violation of the applicable limitation under this
title.</text>
</paragraph></subsection></section><section id="ID873E9154DE204BFCBF3CB495F1C05C4C"><enum>703.</enum><header>Nitrogen oxide
trading program</header>
<subsection id="IDE1D12392319E491F885849033E6C3B04"><enum>(a)</enum><header>Regulations</header>
<paragraph id="ID13F1F5EB308E4A94AEB9C8EB005C5B00"><enum>(1)</enum><header>In
general</header><text>Not later than January 1, 2010, the Administrator shall
promulgate regulations to establish for affected units in the United States a
nitrogen oxide allowance trading program.</text>
</paragraph><paragraph id="ID0534D5619FD948A5005593EAF01D4092"><enum>(2)</enum><header>Requirements</header><text>Regulations
promulgated under paragraph (1) shall establish requirements for the allowance
trading program under this section, including requirements concerning—</text>
<subparagraph id="IDB3476692187B4AE487FE8300B0B6A2A5"><enum>(A)</enum><clause commented="no" display-inline="yes-display-inline" id="ID11E8992B27E04FA2AF3086041C171047"><enum>(i)</enum><text>the generation,
allocation, issuance, recording, tracking, transfer, and use of nitrogen oxide
allowances; and</text>
</clause><clause id="ID690120AAE4A14D19B6F29B509ED24FD7" indent="up1"><enum>(ii)</enum><text>the public availability of all
information concerning the activities described in clause (i) that is not
confidential;</text>
</clause></subparagraph><subparagraph id="ID3623058764DF47BCA2D884A482A610FF"><enum>(B)</enum><text>compliance with
subsection (e)(1);</text>
</subparagraph><subparagraph id="ID512DFAEC65D24D3EA810CE7CBE11A022"><enum>(C)</enum><text>the monitoring
and reporting of emissions under paragraphs (2) and (3) of subsection (e);
and</text>
</subparagraph><subparagraph id="IDB704189EBE164462BF00E75434CD4B00"><enum>(D)</enum><text>excess emission
penalties under subsection (e)(4).</text>
</subparagraph></paragraph><paragraph id="idD53624A6C23B4175AD98F09B28768E7A"><enum>(3)</enum><header>Mixed fuel,
cogeneration facilities and combined heat and power
facilities</header><text>The Administrator shall promulgate such regulations as
the Administrator determines to be necessary to ensure the equitable issuance
of allowances to—</text>
<subparagraph id="ID35247d191e17425aadfc8c1f0df55556"><enum>(A)</enum><text>facilities that
use more than 1 energy source to produce electricity; and</text>
</subparagraph><subparagraph id="ID0f40bec53a1946a19ee51fc1fb05bdeb"><enum>(B)</enum><text>facilities that
produce electricity in addition to another service or product.</text>
</subparagraph></paragraph></subsection><subsection id="IDD82C2F1568234F8996966DC900CCEAB1"><enum>(b)</enum><header>New unit
reserves</header>
<paragraph id="ID011E48715DB94A4F9566EF2D95A7D8F6"><enum>(1)</enum><header>Establishment</header><text>For
each calendar year, based on projections of electricity output from new units,
the Administrator, in consultation with the Secretary of Energy, shall
establish by regulation a reserve of nitrogen oxide allowances to be set aside
for use by new units in Zone 1 States, and a reserve of nitrogen oxide
allowances to be set aside for use by new units in Zone 2 States, that is not
less than 5 percent of the total allowances allocated to affected units for the
calendar year.</text>
</paragraph><paragraph id="id09A4BD1CD2D449B0B54A6EA79293D28F"><enum>(2)</enum><header>Unused
allowances</header><text>For each calendar year, the Administrator shall
reallocate, to all affected units, any unused nitrogen oxide allowances from
the new unit reserve established under paragraph (1) in the proportion
that—</text>
<subparagraph id="idE241D9DDD5B84DF38F1A2034209BD04E"><enum>(A)</enum><text>the number of
allowances allocated to each affected unit for the calendar year; bears
to</text>
</subparagraph><subparagraph id="id48C41FF0020A4E359E89582D404AAF42"><enum>(B)</enum><text>the number of
allowances allocated to all affected units for the calendar year.</text>
</subparagraph></paragraph></subsection><subsection id="ID04E6C3277A0D4DD1B569FCB3F0B2C97B"><enum>(c)</enum><header>Nitrogen oxide
allocations</header>
<paragraph id="ID6634B7D0908E42B9936F155118086522"><enum>(1)</enum><header>Timing of
allocations</header><text>The Administrator shall allocate nitrogen oxide
allowances to affected units by not later than December 31 of calendar year
2008 and each calendar year thereafter, for the fourth calendar year that
begins after that December 31.</text>
</paragraph><paragraph id="IDF9E5C39A333240FBAAA921F570230096"><enum>(2)</enum><header>Allocations to
affected units that are not new units</header>
<subparagraph id="id479711A3A3734C6E8E0870708991D7B1"><enum>(A)</enum><header>Zone 1
States</header><text>The Administrator shall allocate, to each affected unit in
a Zone 1 State that is not a new unit, a quantity of nitrogen oxide allowances
that is equal to the product obtained by multiplying—</text>
<clause id="ID5ed82f138ac449d293786ef8be134959"><enum>(i)</enum><text>the quantity of
nitrogen oxide allowances available for allocation under paragraph (3)(A);
and</text>
</clause><clause id="IDec6e1ae923ef4f6a95a8e35aab275882"><enum>(ii)</enum><text>the quotient
obtained by dividing—</text>
<subclause id="ID66a5dcebc5b54b3194589924eed14a6f"><enum>(I)</enum><text>the annual
average quantity of electricity generated by the unit during the most recent
3-calendar year period for which data are available, updated each calendar year
and measured in megawatt hours; and</text>
</subclause><subclause id="ID151c132028d1402cb932286e0139dfa9"><enum>(II)</enum><text>the total of the
average quantities described in subclause (I) with respect to all affected
units in all Zone 1 States.</text>
</subclause></clause></subparagraph><subparagraph id="id08651A8EF1604646A549C35590255BEE"><enum>(B)</enum><header>Zone 2
States</header><text>The Administrator shall allocate, to each affected unit in
a Zone 2 State that is not a new unit, a quantity of nitrogen oxide allowances
that is equal to the product obtained by multiplying—</text>
<clause id="IDc4632d48f78e406e96e22d992fa9f49f"><enum>(i)</enum><text>the quantity of
nitrogen oxide allowances available for allocation under paragraph (3)(B);
and</text>
</clause><clause id="IDfac30855ed2a4658988118d2b7ed8369"><enum>(ii)</enum><text>the quotient
obtained by dividing—</text>
<subclause id="ID3856c96267434a2cb081930c4aaad4fe"><enum>(I)</enum><text>the annual
average quantity of electricity generated by the unit during the most recent
3-calendar year period for which data are available, updated each calendar year
and measured in megawatt hours; and</text>
</subclause><subclause id="IDb5aeb7468c3a4713bc40623dcc965d7e"><enum>(II)</enum><text>the total of the
average quantities described in subclause (I) with respect to all affected
units in all Zone 2 States.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="idF886E2427A554884A4E059ECDF934475"><enum>(3)</enum><header>Quantity to be
allocated</header>
<subparagraph id="id6DF1DAF572814E70A69208154260CA62"><enum>(A)</enum><header>Zone 1
States</header><text>For each calendar year, the quantity of nitrogen oxide
allowances allocated under paragraph (2)(A) to affected units that are not new
units shall be equal to the difference between—</text>
<clause id="id3B054457BA8D479197940DEF77481422"><enum>(i)</enum><text>the annual
tonnage limitation for emissions of nitrogen oxides from affected units
specified in section 702(b)(3)(A) for the calendar year; and</text>
</clause><clause id="ID46fcaefda6dd438ab13a1f5edacd53e8"><enum>(ii)</enum><text>the quantity of
nitrogen oxide allowances placed in the new unit reserve established under
subsection (b) for the calendar year.</text>
</clause></subparagraph><subparagraph id="id180BF036AB4D415C93CB2127893BF094"><enum>(B)</enum><header>Zone 2
States</header><text>For each calendar year, the quantity of nitrogen oxide
allowances allocated under paragraph (2)(B) to affected units that are not new
units shall be equal to the difference between—</text>
<clause id="id270F48E36FA54DF7BC07ED5414E9F74F"><enum>(i)</enum><text>the annual
tonnage limitation for emissions of nitrogen oxides from affected units
specified in section 702(b)(3)(B) for the calendar year; and</text>
</clause><clause id="IDeafb8973b42b43f7a973a3e534a58479"><enum>(ii)</enum><text>the quantity of
nitrogen oxide allowances placed in the new unit reserve established under
subsection (b) for the calendar year.</text>
</clause></subparagraph></paragraph><paragraph id="ID7FD90026DD1141C9B6CFA9E8E203FB9E"><enum>(4)</enum><header>Adjustment of
allocations</header><text>If, for any calendar year, the total quantities of
allowances allocated under paragraph (2) are not equal to the applicable
quantities determined under paragraph (3), the Administrator shall adjust the
quantities of allowances allocated to affected units that are not new units on
a pro-rata basis so that the quantities are equal to the applicable quantities
determined under paragraph (3).</text>
</paragraph><paragraph id="ID922AFC1F2D9C471F8FA2389724183D27"><enum>(5)</enum><header>Allocation to
new units</header>
<subparagraph id="ID490525B936414FD7BEA8A2E6D8CCCE33"><enum>(A)</enum><header>Methodology</header><text>The
Administrator shall promulgate regulations to establish a methodology for
allocating nitrogen oxide allowances to new units.</text>
</subparagraph><subparagraph id="IDFA2854F8CA6E4358B113E833613EB4A3"><enum>(B)</enum><header>Quantity of
nitrogen oxide allowances allocated</header><text>The Administrator shall
determine the quantity of nitrogen oxide allowances to be allocated to each new
unit based on the projected emissions from the new unit.</text>
</subparagraph></paragraph><paragraph id="ID0F146373AFDB45978392E77100BD6D80"><enum>(6)</enum><header>Allowance not a
property right</header><text>A nitrogen oxide allowance—</text>
<subparagraph id="IDBD1075F1843A458C947762000036A846"><enum>(A)</enum><text>is not a property
right; and</text>
</subparagraph><subparagraph id="IDF6FB6EFEC2014659B4E118D0097696FC"><enum>(B)</enum><text>may be terminated
or limited by the Administrator.</text>
</subparagraph></paragraph><paragraph id="ID66F5216EB88F405789B27E8FE3035E3E"><enum>(7)</enum><header>No judicial
review</header><text>An allocation of nitrogen allowances by the Administrator
under this subsection shall not be subject to judicial review.</text>
</paragraph></subsection><subsection id="ID43233C53A90243F2B800C60082FAC8CF"><enum>(d)</enum><header>Nitrogen oxide
allowance transfer system</header>
<paragraph id="IDA93AADAA513A4AFFA1876117B8C7D5B3"><enum>(1)</enum><header>Use of
allowances</header><text>The regulations promulgated under subsection (a)(1)
shall—</text>
<subparagraph id="IDAEDE55E42933474792D5EBBB4EC3A721"><enum>(A)</enum><text>prohibit the use
(but not the transfer in accordance with paragraph (3)) of any nitrogen oxide
allowance before the calendar year for which the allowance is allocated;</text>
</subparagraph><subparagraph id="ID8FD77B423BA94935B3458497FA92C500"><enum>(B)</enum><text>provide that
unused nitrogen oxide allowances may be carried forward and added to nitrogen
oxide allowances allocated for subsequent years; and</text>
</subparagraph><subparagraph id="IDCAFB698EFA79402480C2E2D419B40045"><enum>(C)</enum><text>provide that
unused nitrogen oxide allowances may be transferred by—</text>
<clause id="IDC07D4E467E2D41708EA02EF36F4EDFE2"><enum>(i)</enum><text>the person to
which the allowances are allocated; or</text>
</clause><clause id="ID449A88B1FF024C8E80EF0083B0C81266"><enum>(ii)</enum><text>any person to
which the allowances are transferred.</text>
</clause></subparagraph></paragraph><paragraph id="IDC6C48F543D7049718C7D876E774E33E1"><enum>(2)</enum><header>Use by persons
to which allowances are transferred</header><text>Any person to which nitrogen
oxide allowances are transferred under paragraph (1)(C)—</text>
<subparagraph id="IDDA3153493E34495F855C17DB00C69EFA"><enum>(A)</enum><text>may use the
nitrogen oxide allowances in the calendar year for which the nitrogen oxide
allowances were allocated, or in a subsequent calendar year, to demonstrate
compliance with subsection (e)(1); or</text>
</subparagraph><subparagraph id="ID6000717DDB894A0F8F11E8302829B01D"><enum>(B)</enum><text>may transfer the
nitrogen oxide allowances to any other person for the purpose of demonstration
of that compliance.</text>
</subparagraph></paragraph><paragraph id="IDB00FB0AADB144ED6B155FB70A05E00E0"><enum>(3)</enum><header>Certification
of transfer</header><text>A transfer of a nitrogen oxide allowance shall not
take effect until a written certification of the transfer, authorized by a
responsible official of the person making the transfer, is received and
recorded by the Administrator.</text>
</paragraph><paragraph id="IDABFE2FEC7ADA4EB8A087B7CC8C95F404"><enum>(4)</enum><header>Permit
requirements</header><text>An allocation or transfer of nitrogen oxide
allowances to an affected unit shall, after recording by the Administrator, be
considered to be part of the federally enforceable permit of the affected unit
under this Act, without a requirement for any further review or revision of the
permit.</text>
</paragraph></subsection><subsection id="IDB73D28587E654CF7B0ED963F640021B6"><enum>(e)</enum><header>Compliance and
enforcement</header>
<paragraph id="ID524392C8D15C48399985897B47708786"><enum>(1)</enum><header>In
general</header><text>For calendar year 2012 and each calendar year thereafter,
the operator of each affected unit shall surrender to the Administrator a
quantity of nitrogen oxide allowances that is equal to the total tons of
nitrogen oxides emitted by the affected unit during the calendar year.</text>
</paragraph><paragraph id="id1A7611F78C644B19B2215F21E686674B"><enum>(2)</enum><header>Monitoring
system</header><text>The Administrator shall promulgate regulations
requiring—</text>
<subparagraph id="idA20A73343C724892AAF3081B8DCBDF5C"><enum>(A)</enum><text>operation,
reporting, and certification of continuous emissions monitoring systems to
accurately measure the quantity of nitrogen oxides that is emitted from each
affected unit; and</text>
</subparagraph><subparagraph id="id5534A9954DBB4087B81FE4CA54A22D2B"><enum>(B)</enum><text>verification and
reporting of nitrogen oxides emissions at each affected unit.</text>
</subparagraph></paragraph><paragraph id="ID681BCEA81133474499969821860300AC"><enum>(3)</enum><header>Reporting</header>
<subparagraph id="ID453942DF22CD4997B4B952083827DAD3"><enum>(A)</enum><header>In
general</header><text>Not less often than quarterly, the owner or operator of
an affected unit shall submit to the Administrator a report on the monitoring
of emissions of nitrogen oxides carried out by the owner or operator in
accordance with the regulations promulgated under paragraph (2).</text>
</subparagraph><subparagraph id="IDB91933DF14EB46F6B75471963074FD35"><enum>(B)</enum><header>Authorization</header><text>Each
report submitted under subparagraph (A) shall be authorized by a responsible
official of the affected unit, who shall certify the accuracy of the
report.</text>
</subparagraph><subparagraph id="ID6AAC25B9FF9746A1A05517EDE615A204"><enum>(C)</enum><header>Public
reporting</header><text>The Administrator shall make available to the public,
through 1 or more published reports and 1 or more forms of electronic media,
data concerning the emissions of nitrogen oxides from each affected
unit.</text>
</subparagraph></paragraph><paragraph id="ID6BA1D58B7EDB40A1BA3BBFA0EB018874"><enum>(4)</enum><header>Excess
emissions</header>
<subparagraph id="IDFB40A65A3FE04A5B8FA85BD7A0299250"><enum>(A)</enum><header>In
general</header><text>The owner or operator of an affected unit that emits
nitrogen oxides in excess of the nitrogen oxide allowances that the owner or
operator holds for use for the affected unit for the calendar year
shall—</text>
<clause id="ID67B7182905EF49BEB4A56748EC93C094"><enum>(i)</enum><text>pay an excess
emissions penalty determined under subparagraph (B); and</text>
</clause><clause id="IDF00CFEE978D64C6EB55F08C3FE032C6D"><enum>(ii)</enum><text>offset the
excess emissions by at least an equal quantity in the following calendar year
or such other period as the Administrator shall prescribe.</text>
</clause></subparagraph><subparagraph id="ID8F7F60E610544549A404230063CE4581"><enum>(B)</enum><header>Determination
of excess emissions penalty</header><text>The excess emissions penalty for
nitrogen oxides shall be equal to the product obtained by multiplying—</text>
<clause id="IDE3B9ED9B35044B03BB23EC00DBD97F2E"><enum>(i)</enum><text>the number of
tons of nitrogen oxides emitted in excess of the total quantity of nitrogen
oxide allowances held; and</text>
</clause><clause id="IDB86BAC1F1ACE436FAEF0E449792987DC"><enum>(ii)</enum><text>2 times the
average price of a nitrogen oxide allowance for the Zone and calendar year in
which the excess emissions occurred, as determined by the Administrator.</text>
</clause></subparagraph></paragraph></subsection><subsection id="IDe61ae8f5286a4be1b25ab8479f269191"><enum>(f)</enum><header>Treatment of
existing programs</header>
<paragraph id="id42A2905F2779484EA0E4B781A83EB6A4"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), the provisions of
the rule of the Administrator entitled the <quote>Clean Air Interstate
Rule</quote> (70 Fed. Reg. 25162 (May 12, 2005)) (or a successor regulation)
providing for the establishment of an annual emissions cap and trading program
for oxides of nitrogen shall terminate on the later of—</text>
<subparagraph id="idD8E9991FC5394CBB83F4D619F98585C8"><enum>(A)</enum><text>the effective
date of the regulations promulgated under this section; and</text>
</subparagraph><subparagraph id="idE60917ED14434153859910A9FABE475A"><enum>(B)</enum><text>January 1,
2012.</text>
</subparagraph></paragraph><paragraph id="idCCBF42ECAFF9467F835D45D8DCF231C1"><enum>(2)</enum><header>Exception</header><text>Notwithstanding
paragraph (1), any provision of the rule referred to in that paragraph (or a
successor regulation) relating to the establishment of a seasonal ozone
emission cap-and-trade program for nitrogen oxides shall remain in full force
and effect.</text>
</paragraph></subsection></section><section id="IDFEE47B554081405091B048A6FE003B75"><enum>704.</enum><header>Mercury
program</header>
<subsection id="id91DC0ACECF3647D9968F50732FBBFF89"><enum>(a)</enum><header>Definition of
inlet mercury</header><text>In this section, the term <term>inlet
mercury</term> means the quantity of mercury found—</text>
<paragraph id="IDb2ec781681414ccface10be4c53c57b6"><enum>(1)</enum><text>in the as-fired
coal of an affected unit; or</text>
</paragraph><paragraph id="IDfdc03b5930a645f3a6b28ba465273ea7"><enum>(2)</enum><text>for an affected
unit using coal that is subjected to an advanced coal cleaning technology, in
the as-mined coal of the affected unit.</text>
</paragraph></subsection><subsection id="IDc3154cc312e545ce837fcdaa7d74b215"><enum>(b)</enum><header>Annual
limitation for certain units</header><text>On an annual average calendar year
basis with respect to inlet mercury, an affected unit that commences operation
on or after the date of enactment of this title shall be subject to the less
stringent emission limitation of—</text>
<paragraph id="ID5f5d573c2bb34ac5a388167dc1b6364b"><enum>(1)</enum><text>90 percent
capture of inlet mercury; or</text>
</paragraph><paragraph id="ID147a9c8000e44ea6a77ddfb5068e4b8e"><enum>(2)</enum><text>an emission rate
of 0.0060 lbs/GWh.</text>
</paragraph></subsection><subsection id="IDa78bee74714147d4a767d2cc560537b5"><enum>(c)</enum><header>Annual
limitation for existing units</header><text>An affected unit in operation on
the date of enactment of this title shall be subject to the following emission
limitations on an annual average calendar year basis with respect to inlet
mercury:</text>
<paragraph id="ID7029c567b5e04d38b1b65a8a8460c4a4"><enum>(1)</enum><header>Calendar years
2012 through 2014</header><text>For the period beginning on January 1, 2012,
and ending on December 31, 2014, the less stringent limitation of—</text>
<subparagraph id="id015298EB2CD34D918E7F98E61E1AE002"><enum>(A)</enum><text>60 percent
capture of inlet mercury; and</text>
</subparagraph><subparagraph id="id4B84D6F57C9A4EA5B5E7A47627C1CD7F"><enum>(B)</enum><text>an emission rate
of 0.02 lbs/GWh.</text>
</subparagraph></paragraph><paragraph id="IDaf2f3d271c61474b9ffa37e8e272cc05"><enum>(2)</enum><header>Calendar year
2015 and thereafter</header><text>For calendar year 2015 and each calendar year
thereafter, the less stringent limitation of—</text>
<subparagraph id="id6A644C9B43B0438E9879C78CD7FBF9F0"><enum>(A)</enum><text>90 percent
capture of inlet mercury; and</text>
</subparagraph><subparagraph id="id8188B136433A4AFB98FE445C938A8385"><enum>(B)</enum><text>an emission rate
of 0.0060 lbs/GWh.</text>
</subparagraph></paragraph></subsection><subsection id="ID97675934d2ba431390a43d3fbd8066a7"><enum>(d)</enum><header>Averaging
across units</header><text>An owner or operator of an affected unit may
demonstrate compliance with the annual average limitations under subsections
(b) and (c) by averaging emissions from all affected units at a single
facility.</text>
</subsection><subsection id="id9F7ACE9111AF4C6FB7CE3B68E07AF16C"><enum>(e)</enum><header>Monitoring
system</header><text>The Administrator shall promulgate regulations
requiring—</text>
<paragraph id="id894172CD5AF24CB1B23F094E7EDF65F9"><enum>(1)</enum><text>operation,
reporting, and certification of continuous emissions monitoring systems to
accurately measure the quantity of mercury that is emitted from each affected
unit; and</text>
</paragraph><paragraph id="idFE72F02D0D194A73B99EBCA504018F1F"><enum>(2)</enum><text>verification and
reporting of mercury emissions at each affected unit.</text>
</paragraph></subsection><subsection id="idFB3DE7060EE94DC0BE7EFAB624DA5E88"><enum>(f)</enum><header>Reporting</header>
<paragraph id="idA01272D8DD80428F9FAD27018032871A"><enum>(1)</enum><header>In
general</header><text>Not less often than quarterly, the owner or operator of
an affected unit shall submit to the Administrator a report on the monitoring
of emissions of mercury carried out by the owner or operator in accordance with
the regulations promulgated under subsection (e).</text>
</paragraph><paragraph id="id5D93C72B100A4F54962FCF7792031837"><enum>(2)</enum><header>Authorization</header><text>Each
report submitted under paragraph (1) shall be authorized by a responsible
official of the affected unit, who shall certify the accuracy of the
report.</text>
</paragraph><paragraph id="id657ADA0B7AB34CE0880F29D28EEFCE58"><enum>(3)</enum><header>Public
reporting</header><text>The Administrator shall make available to the public,
through 1 or more published reports and 1 or more forms of electronic media,
data concerning the emission of mercury from each affected unit.</text>
</paragraph></subsection><subsection id="idE15A5DA40F444BA1A13B8906FB4D35D9"><enum>(g)</enum><header>Excess
emissions</header>
<paragraph id="idAFD05720E36B43BB84096DAFB95AE0A0"><enum>(1)</enum><header>In
general</header><text>The owner or operator of an affected unit that emits
mercury in excess of the emission limitation described in subsection (b) or (c)
shall pay an excess emissions penalty determined under paragraph (2).</text>
</paragraph><paragraph id="id76E9431A79C740AC999D3FAE8A865021"><enum>(2)</enum><header>Determination
of excess emissions penalty</header><text>The excess emissions penalty for
mercury shall be an amount equal to $50,000 for each pound of mercury emitted
in excess of the emission limitation described in subsection (b) or (c), as
pro-rated for each fraction of a pound.</text>
</paragraph></subsection></section><section id="id937C5B3664934B2A9DA1C1578B149E76"><enum>705.</enum><header>Carbon dioxide
allowance trading program</header>
<subsection id="idEB35F70190AE4DA38BBE0F55B679D71D"><enum>(a)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="IDc11985cca09e4d8dacbef72478de34fd"><enum>(1)</enum><header>Allowance</header><text>The
term <term>allowance</term> means—</text>
<subparagraph id="id66C47D5E3289436893590BDF24F6C70B"><enum>(A)</enum><text>a carbon dioxide
allowance;</text>
</subparagraph><subparagraph id="id5CA7CA0379D644EE9414CA817FB30371"><enum>(B)</enum><text>an offset
allowance; or</text>
</subparagraph><subparagraph id="idF444FF7CC6F5418FA14A0325FCF43506"><enum>(C)</enum><text>an early
reduction allowance.</text>
</subparagraph></paragraph><paragraph id="ID4f9f5fce2648418f9ae5946e93044313"><enum>(2)</enum><header>Early reduction
allowance</header><text>The term <term>early reduction allowance</term> means a
carbon dioxide allowance issued under subsection (g) for a project in the
United States to reduce emissions of greenhouse gases or to sequester
greenhouse gases that is carried out in calendar years 2000 through
2012.</text>
</paragraph><paragraph id="IDe57b419ce758404981978e6521c4d8b9"><enum>(3)</enum><header>Offset
allowance</header><text>The term <term>offset allowance</term> means a carbon
dioxide allowance issued under subsection (e) for a project to reduce emissions
of greenhouse gases or to sequester greenhouse gases.</text>
</paragraph></subsection><subsection id="idE94465AC78D44FA6B3C7872FE700F10E"><enum>(b)</enum><header>Regulations</header>
<paragraph id="id760218FA8FF64C1483B8E51DCDD17E04"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Not later than 2
years after the date of enactment of this title, the Administrator shall
promulgate regulations to establish an allowance trading program for covered
units in the United States.</text>
</paragraph><paragraph id="id19F3F1743B7C4389AE7EFE2035F4EE89"><enum>(2)</enum><header>Requirements</header><text>Regulations
promulgated under paragraph (1) shall establish requirements for the carbon
dioxide allowance trading program under this section, including requirements
concerning—</text>
<subparagraph id="ID1c17f5f0bcd04e3190c0eadf92561632"><enum>(A)</enum><text>the allocation,
issuance, and use of carbon dioxide allowances;</text>
</subparagraph><subparagraph id="ID0f333687d8624c44b8a78a6c63162f63"><enum>(B)</enum><text>the reserve and
allocation of carbon dioxide allowances for new units and new renewable energy
units;</text>
</subparagraph><subparagraph id="IDd61cbacff1024c9dba0b4b3c18757916"><enum>(C)</enum><text>the issuance,
certification, and use of offset allowances;</text>
</subparagraph><subparagraph id="IDfcc38e3e1a054c06a90ec7f5b0829a9a"><enum>(D)</enum><text>the issuance,
certification, and use of early reduction allowances;</text>
</subparagraph><subparagraph id="ID0ac08b6b1ba742bfbbec7d0ebcb84d08"><enum>(E)</enum><text>the transfer of
allowances;</text>
</subparagraph><subparagraph id="ID8b95b77535c64d6f9e61785f9ca324cf"><enum>(F)</enum><text>the monitoring,
tracking, and reporting of carbon dioxide emissions;</text>
</subparagraph><subparagraph id="ID8b823fa244ce4fd9a0dae56085c02bf6"><enum>(G)</enum><text>compliance and
enforcement; and</text>
</subparagraph><subparagraph id="ID7ec2e9e77d304c85b78e76ab69156da2"><enum>(H)</enum><text>the public
availability of carbon dioxide emissions information.</text>
</subparagraph></paragraph><paragraph id="ID5927ecf3b25143f7a45357af0149f017"><enum>(3)</enum><header>Interaction
with Department of Agriculture</header>
<subparagraph id="ID50324dd191ee46faa01a13512d586019"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), the Administrator
shall promulgate all regulations relating to offsets under this title.</text>
</subparagraph><subparagraph id="ID9f6a64b94d6b499e87f4095cd868a4e0"><enum>(B)</enum><header>Offsets</header><text>The
Administrator shall promulgate regulations relating to offsets produced by
agricultural sequestration practices in consultation with the Secretary of
Agriculture.</text>
</subparagraph></paragraph></subsection><subsection id="IDE445D49757C64C38887D8962A9286E86"><enum>(c)</enum><header>New unit
reserve</header>
<paragraph id="id51D75F8662F54C82A48D1436B5EE2715"><enum>(1)</enum><header>Establishment</header><text>For
each calendar year, based on projections of electricity output from new units,
the Administrator, in consultation with the Secretary of Energy, shall
establish by regulation a reserve of carbon dioxide allowances to be allocated
to new covered units for the calendar year.</text>
</paragraph><paragraph id="id43401B639A3145C3844D88DE70D84C7A"><enum>(2)</enum><header>Limitations</header>
<subparagraph id="id704216A7BA4A4787865274483B86CE79"><enum>(A)</enum><header>In
general</header><text>The number of allowances allocated under paragraph (1)
during a calendar year shall be not more than 2 percent of the total number of
allowances allocated to covered units for the calendar year.</text>
</subparagraph><subparagraph id="id9BA38AFC292E495BBD29FF5D1EDA3E4F"><enum>(B)</enum><header>Requirement</header><text>Notwithstanding
any other provision of this Act, no allowance shall be allocated to any
coal-fired covered unit or any coal-fired new unit unless that covered unit or
new unit—</text>
<clause id="id8E3F0D7F4EE147788A7916AE95C96ECB"><enum>(i)</enum><text>is powered by a
qualifying advanced clean coal technology (as defined pursuant to subsection
(d)(2)); or</text>
</clause><clause id="idA21AD528F74246CF9B777C8733D8F3EE"><enum>(ii)</enum><text>entered
operation before January 1, 2007.</text>
</clause></subparagraph></paragraph><paragraph id="id75D0409F23A84C969EE28A2B991F1A8B"><enum>(3)</enum><header>Unused
allowances</header><text>For each calendar year, the Administrator shall
reallocate, to all covered units, any unused carbon dioxide allowances from the
new unit reserve established under paragraph (1) in the proportion that—</text>
<subparagraph id="idF9D974EC463647ADB93039CC1BCF0353"><enum>(A)</enum><text>the number of
allowances allocated to each covered unit for the calendar year; bears
to</text>
</subparagraph><subparagraph id="id9EDCB2C4521D46EFADD93DA0B436B205"><enum>(B)</enum><text>the number of
allowances allocated to all covered units for the calendar year.</text>
</subparagraph></paragraph></subsection><subsection id="IDde8fdd880ed14762af0afe55a57f0a8d"><enum>(d)</enum><header>Incentives for
clean coal technology</header>
<paragraph id="IDc9799cf5307849e79e63690532be1eb0"><enum>(1)</enum><header>Establishment</header><text>The
Administrator shall establish by regulation a reserve of carbon dioxide
allowances to be set aside during a calendar year to encourage the deployment
of clean coal technologies.</text>
</paragraph><paragraph id="IDb3ee76dec76643b8bf6f1c116a8998d9"><enum>(2)</enum><header>Defining
qualifying advanced clean coal technologies</header>
<subparagraph id="id8D3EDAD9A36F4724BBBAD1510D8D2F7A"><enum>(A)</enum><header>Definition of
available technology</header><text>In this paragraph, the term <term>available
technology</term> means any coal combustion technology that achieves an
output-based emission rate of, as applicable—</text>
<clause id="idFE4D1B6667A24C17AE462EDBFAA2D6D3"><enum>(i)</enum><text>1,100 pounds of
carbon dioxide per megawatt-hour; and</text>
</clause><clause id="id9726666374ED4F2EA002FB341E670239"><enum>(ii)</enum><text>0.0060 pounds of
mercury per gigawatt-hour.</text>
</clause></subparagraph><subparagraph id="id11F425957F00434E8106E51C88A19310"><enum>(B)</enum><header>Criteria and
standards</header><text>Not later than July 1, 2009, the Administrator shall
establish criteria and standards to define the term <quote>qualifying advanced
clean coal technology</quote> with respect to electric power generation.</text>
</subparagraph><subparagraph id="idB3524BDE07614E5BBC4B77AD7C188B92"><enum>(C)</enum><header>Requirement</header><text>In
establishing criteria and standards under subparagraph (B), the Administrator
shall ensure that the qualifying advanced clean coal technologies represent an
advance in available technology, taking into consideration—</text>
<clause id="id79B7E0858B14451AB4DCA177331996E4"><enum>(i)</enum><text>net thermal
efficiency;</text>
</clause><clause id="id56AC8DC8FC3A4FE7AAB3C4EB4DD961A4"><enum>(ii)</enum><text>measures to
capture and sequester carbon dioxide; and</text>
</clause><clause id="idBC63611051DB4421B6EE7DE390801D76"><enum>(iii)</enum><text>output-based
emission rates for—</text>
<subclause id="idB773B14AA8464C77B1422D98F598545B"><enum>(I)</enum><text>carbon
dioxide;</text>
</subclause><subclause id="id5B78F76A5948457CAB7659D6028906AA"><enum>(II)</enum><text>sulfur
dioxide;</text>
</subclause><subclause id="idB6C07B3691814F948B644CFD264A4E74"><enum>(III)</enum><text>oxides of
nitrogen;</text>
</subclause><subclause id="idDD72B77BA4EC4BFDAB68DA53966A8E91"><enum>(IV)</enum><text>filterable and
condensable particulate matter; and</text>
</subclause><subclause id="idF3473576E67542A2A0AB129C73079E8E"><enum>(V)</enum><text>mercury.</text>
</subclause></clause></subparagraph><subparagraph id="id88F93225CADC4F2DA53D81E191AE9D38"><enum>(D)</enum><header>Review and
revision</header>
<clause id="id09FC63345D3F44FE8523D6BAA3F03059"><enum>(i)</enum><header>In
general</header><text>Not later than July 1, 2010, and each July 1 thereafter,
the Administrator shall review and, if appropriate, revise the criteria and
standards under subparagraph (B) based on technological advances during the
preceding calendar year.</text>
</clause><clause id="idC6FDD8F9FCD748BEBD866C81CE29BAB7"><enum>(ii)</enum><header>Notice and
comment not required</header><text>Subject to clause (iii), after the initial
criteria and standards are established under subparagraph (B), no subsequent
review or revision under this subparagraph shall be subject to the notice and
comment provisions of section 553 of title 5, United States Code.</text>
</clause><clause id="id8445E85C6E934B70BA39169C362FC5F3"><enum>(iii)</enum><header>Effect</header><text>Nothing
in clause (ii) precludes the application of the notice and comment provisions
of section 553 of title 5, United States Code, as the Administrator determines
to be practicable.</text>
</clause></subparagraph></paragraph><paragraph id="idDCBFBEFD350942769F84BABDF3031276"><enum>(3)</enum><header>Quantity and
distribution of allowances</header>
<subparagraph id="id32A15C0C37AD4060ABA6C23BAA49633F"><enum>(A)</enum><header>Quantity</header><text>The
Administrator shall set aside by regulation an annual quantity of carbon
dioxide allowances for qualifying advanced clean coal technologies equal to 3
percent of the annual tonnage limitation established under section 702(d) for
the period beginning on January 1, 2012, and ending on December 31,
2025.</text>
</subparagraph><subparagraph id="id6D6C5CA933614847981AA9BC919C2A14"><enum>(B)</enum><header>Distribution</header>
<clause id="id05C657C6589449039B5A404D23A407F9"><enum>(i)</enum><header>In
general</header><text>The Administrator shall establish by regulation a
methodology for distributing the carbon dioxide allowances set aside under
subparagraph (A) to encourage the deployment of advanced clean coal
technologies.</text>
</clause><clause id="ID3094daa1cbb243ccba4d34d9f372e023"><enum>(ii)</enum><header>Review and
revision</header>
<subclause id="idF7493AC5BC63410E97FDE59B12B8272E"><enum>(I)</enum><header>In
general</header><text>Not later than July 1, 2009, and each July 1 thereafter,
the Administrator shall review and, if appropriate, revise the criteria and
standards under clause (i) based on technological advances during the preceding
calendar year.</text>
</subclause><subclause id="id400804C5B3A84EABAF503535C8E2EBE6"><enum>(II)</enum><header>Notice and
comment not required</header><text>Subject to subclause (III), after the
initial criteria and standards are established under clause (i), no subsequent
review or revision under this subparagraph shall be subject to the notice and
comment provisions of section 553 of title 5, United States Code.</text>
</subclause><subclause id="id73473CC766E94DE9978131513441C8B8"><enum>(III)</enum><header>Effect</header><text>Nothing
in subclause (II) precludes the application of the notice and comment
provisions of section 553 of title 5, United States Code, as the Administrator
determines to be practicable.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="ID39706b1a476c4a498289047cc282dc65"><enum>(4)</enum><header>Treatment of
correspondence</header><text>The correspondence of the Office of Air Quality
Planning and Standards addressing best available control technology
requirements for proposed coal-fired power plant projects and dated December
13, 2005—</text>
<subparagraph id="id09E0C0A50C63491AAD669BC54EA13C3E"><enum>(A)</enum><text>shall be
considered to be inconsistent with section 169(3); and</text>
</subparagraph><subparagraph id="idA35BE6EC945B4686A179DBFB93FA15E8"><enum>(B)</enum><text>shall be treated
as void and of no effect as of the date of issuance of the
correspondence.</text>
</subparagraph></paragraph></subsection><subsection id="IDF9FE36CA364C4999841F2E7996B8131E"><enum>(e)</enum><header>Carbon dioxide
allowance allocation to covered units that are not new units and clean coal
technology reserve</header>
<paragraph id="ID5CC82D7045744CD590FB26B2E02437E3"><enum>(1)</enum><header>Timing of
allocations</header><text>The Administrator shall allocate carbon dioxide
allowances to covered units that are not new units—</text>
<subparagraph id="IDE15AD13ABF5446DDA119AD827F99B0E2"><enum>(A)</enum><text>not later than
December 31, 2008, for calendar year 2012; and</text>
</subparagraph><subparagraph id="ID1D5A3FA17A724DDB85FD90139E3F0911"><enum>(B)</enum><text>not later than
December 31 of calendar year 2009 and each calendar year thereafter, for the
fourth calendar year that begins after that December 31.</text>
</subparagraph></paragraph><paragraph id="ID352b392c14734e87a00afed98486a469"><enum>(2)</enum><header>Allocations</header>
<subparagraph id="id240A225D36E942ECB2B7B04D8680FAE8"><enum>(A)</enum><header>In
general</header><text>The Administrator shall allocate to each covered unit
that is not a new unit a quantity of carbon dioxide allowances that is equal to
the product obtained by multiplying—</text>
<clause id="ID356b3eb723aa4dc1a225243b7c35c0e0"><enum>(i)</enum><text>the quantity of
carbon dioxide allowances available for allocation under subparagraph (B);
and</text>
</clause><clause id="ID7c1520639c1d46849f74a4cedc2f11e2"><enum>(ii)</enum><text>the quotient
obtained by dividing—</text>
<subclause id="IDd9ec2f42939044aca4c86f70bc8781e0"><enum>(I)</enum><text>the annual
average quantity of electricity generated by the unit during the most recent
3-calendar year period for which data are available, updated each calendar year
and measured in megawatt hours; and</text>
</subclause><subclause id="ID10855cba5c1a45e7bc167e94be36c690"><enum>(II)</enum><text>the total of the
average quantities described in subclause (I) with respect to all such
units.</text>
</subclause></clause></subparagraph><subparagraph id="ID58d9870122a24a8aaf5c6d07652999c1"><enum>(B)</enum><header>Quantity to be
allocated</header><text>For each calendar year, the quantity of carbon dioxide
allowances allocated under subparagraph (A) to covered units that are not new
units shall be equal to the difference between—</text>
<clause id="ID10be56131dd54ca6b390be027a4213ea"><enum>(i)</enum><text>the annual
tonnage limitation for emissions of carbon dioxide from covered units specified
in section 702(d) for the calendar year; and</text>
</clause><clause id="ID70f7f111d1564804b5063dd6694292f8"><enum>(ii)</enum><text>the sum
of—</text>
<subclause id="id581F64752235490A9DC494C08D104E70"><enum>(I)</enum><text>the quantity of
carbon dioxide allowances placed in the new unit reserve established under
subsection (c) for the calendar year; and</text>
</subclause><subclause id="idAB6EA9766B8C4C399D240F51461B0EEF"><enum>(II)</enum><text>the quantity of
carbon dioxide allowances reserved to provide incentives for advanced clean
coal technologies under subsection (d) for the calendar year.</text>
</subclause></clause></subparagraph><subparagraph id="id43EAD2A827CB413A9CD1218C13C399E7"><enum>(C)</enum><header>Requirement</header><text>Notwithstanding
any other provision of this title, no allowance shall be allocated to any
coal-fired unit that was previously a new unit unless the unit—</text>
<clause id="id54D3F83F7DA14402A93031C8125958E6"><enum>(i)</enum><text>is powered by a
qualifying advanced clean coal technology (as defined pursuant to subsection
(d)(2)); or</text>
</clause><clause id="idF4F1BEB2DE334EBAA1E3DD5930C99D83"><enum>(ii)</enum><text>entered
operation before January 1, 2007.</text>
</clause></subparagraph></paragraph></subsection><subsection id="id0F60DD083D9A42379EF2A1FF7DA7400E"><enum>(f)</enum><header>Offset
allowances</header>
<paragraph id="id49157EC9DF474FC9B8E3A25C67638017"><enum>(1)</enum><header>Regulations</header><text>Regulations
promulgated pursuant to subsection (b)(1) shall establish requirements for the
issuance, certification, and use of offset allowances for greenhouse gas
reduction or sequestration projects carried out in the United States or any
other country, including requirements—</text>
<subparagraph id="ID1cd2be427c9c4bcdb6221c87fd2e9eb7"><enum>(A)</enum><text>that projects not
cause or contribute to adverse effects on human health or the
environment;</text>
</subparagraph><subparagraph id="ID526476a042a0493aac352e251ba0919f"><enum>(B)</enum><text>that projects
result in greenhouse gas reductions that are real, surplus, enforceable,
verifiable, permanent, and not used more than once, as determined by the
Administrator;</text>
</subparagraph><subparagraph id="IDc2ed93bf9c5a483c8851077357107552"><enum>(C)</enum><text>for methodology
for calculating the carbon dioxide equivalent reductions attributable to
projects;</text>
</subparagraph><subparagraph id="IDbd9c4fd5ff814af9bf41d6f867991c1f"><enum>(D)</enum><text>for the
monitoring, reporting, and verification of the greenhouse gas reductions from
projects; and</text>
</subparagraph><subparagraph id="ID2192730cca4b48b980fa4694e7e856b3"><enum>(E)</enum><text>for accounting
principles used to quantify the greenhouse gas reductions of projects that
require—</text>
<clause id="ID6bbec88237524345b99dd132345248fa"><enum>(i)</enum><text>the consideration
of all greenhouse gas impacts of a project;</text>
</clause><clause id="ID42dc5ac8ab064e61b5a216aa4013d699"><enum>(ii)</enum><text>the consistent
application of accounting principles;</text>
</clause><clause id="ID33a05d9cdd0343f5a9085beb08948e56"><enum>(iii)</enum><text>transparency;</text>
</clause><clause id="IDdf175c8dc3ef47e0904c77f695cf6408"><enum>(iv)</enum><text>to the maximum
extent practicable, accuracy; and</text>
</clause><clause id="IDd96cec3912934bc88305f84c712706c7"><enum>(v)</enum><text>the use of
conservative assumptions in cases in which uncertainties require the use of
assumptions.</text>
</clause></subparagraph></paragraph><paragraph id="idC6DC001896524B6498E303DAF0AAEE06"><enum>(2)</enum><header>State offset
methods</header><text>In promulgating regulations pursuant to subsection
(b)(1), the Administrator shall take into consideration offset methods
developed, as of the date of enactment of this title, by the State of
California or any other State pursuant to the Regional Greenhouse Gas
Initiative or a similar regulatory program of comparable rigor, as determined
by the Administrator.</text>
</paragraph><paragraph id="id74A76D17E74F47D3A1792D7832BD9A06"><enum>(3)</enum><header>Approved
categories of offset projects</header>
<subparagraph id="id7F5F93DC66DE48178B38880A90298C2F"><enum>(A)</enum><header>In
general</header><text>Greenhouse gas reduction or sequestration projects from
the following types of operations and projects shall be eligible to create
offsets for use under this section:</text>
<clause id="ID35d5fe54081542acbd56709a723686ff"><enum>(i)</enum><text>Landfill
operations.</text>
</clause><clause id="ID1c5401b0fb034916ac11592f4927d7fb"><enum>(ii)</enum><text>Agricultural
manure management projects.</text>
</clause><clause id="ID4b0292e5f72d427dba87f497db38fb85"><enum>(iii)</enum><text>Agricultural
soil sequestration projects.</text>
</clause><clause id="IDbd395e28a9864993aeff06f2f008a025"><enum>(iv)</enum><text>Forest based
projects, including conservation-based forest management projects,
reforestation projects, and conservation projects.</text>
</clause><clause id="ID28984efd36314ff187f89b90db7f9b9a"><enum>(v)</enum><text>Reduction in
emission of sulfur hexafluoride projects.</text>
</clause><clause id="ID96606a71028e4900b0e2b56895b657c0"><enum>(vi)</enum><text>Energy
efficiency projects.</text>
</clause><clause id="IDa78a8237c2ea418f84b3728ca3bc3e2d"><enum>(vii)</enum><text>Wastewater
treatment facilities.</text>
</clause><clause id="ID929255c24a1f484bb6b3c1d8fdd738f7"><enum>(viii)</enum><text>Coal mining
operations.</text>
</clause><clause id="IDcaf856b54999473bbb0bc63c110cd165"><enum>(ix)</enum><text>Natural gas
transmission and distribution systems.</text>
</clause><clause id="ID64ee50fa3f9b4a95a3cde075ab7e6cff"><enum>(x)</enum><text>Electrical
transmission and distribution systems.</text>
</clause><clause id="id0B651B508F564013909871F1E2A971B4"><enum>(xi)</enum><text>Fossil fuel
combustion at commercial and residential buildings.</text>
</clause></subparagraph><subparagraph id="IDad18659332cf425598f17c9a0ee9f8cb"><enum>(B)</enum><header>Protocols</header>
<clause id="id2972EB15644C4DE1AB3D7BFC73B5743B"><enum>(i)</enum><header>Initial
protocols</header><text>Not later than January 1, 2009, the Administrator shall
develop specific offset protocols for at least a majority of the project types
described in subparagraph (A), with priority given to project types with the
greatest greenhouse gas reduction or sequestration potential, as determined by
the Administrator.</text>
</clause><clause id="idACF7E7EE346549B5AF84B9BEFB643861"><enum>(ii)</enum><header>Subsequent
protocols</header><text>Not later than January 1, 2010, the Administrator shall
develop a specific offset protocol for each project type for which a protocol
was not developed under clause (i).</text>
</clause></subparagraph></paragraph><paragraph id="id70EF5D6EA76D48E7A0690A84589FBD4A"><enum>(4)</enum><header>Creation of
additional categories of greenhouse gas emissions reduction offset
projects</header>
<subparagraph id="id8A5E9460953F4FC4B2FC30890554A935"><enum>(A)</enum><header>In
general</header><text>Subject to subparagraph (B), the Administrator, by
regulation, may create additional categories of greenhouse gas emissions
reduction or sequestration offset projects for types of projects for which the
Administrator determines that compliance with the regulations promulgated
pursuant to subsection (b)(1) is feasible.</text>
</subparagraph><subparagraph id="idD5690F3DEDD84F728E5D2DC08CD9D87D"><enum>(B)</enum><header>Exclusions</header><text>Regulations
promulgated pursuant to subparagraph (A) shall not include any greenhouse gas
emission reduction or sequestration offset project (or type of project) that
affects—</text>
<clause id="idA52BA5869482489D9E447BE2B5294762"><enum>(i)</enum><text>a
motor vehicle (as defined in section 216);</text>
</clause><clause id="id722F90E76E54483CB4ED6B665471523E"><enum>(ii)</enum><text>a nonroad engine
(as defined in section 216); or</text>
</clause><clause id="idCC8BAAFA116846B0BF0D79217FA3B7FF"><enum>(iii)</enum><text>a stationary
source (as defined in section 302) that is not a covered unit.</text>
</clause></subparagraph></paragraph><paragraph id="ID90e6e2ce05c44759bb20cb13c7124bee"><enum>(5)</enum><header>Prohibition on
use</header><text>Notwithstanding paragraphs (3) and (4), a greenhouse gas
emissions reduction or sequestration offset project shall not be eligible to
receive an offset credit for use under this section beginning on the date on
which the reduction or sequestration achieved by the project is required by law
(including regulations) or another legally binding requirement.</text>
</paragraph></subsection><subsection id="id2EB2E222941F45C68981F4D6BEBC3F9F"><enum>(g)</enum><header>Early reduction
allowances</header>
<paragraph id="ID1c307d143d33430f8822e26cb278ac30"><enum>(1)</enum><header>In
general</header><text>Not later than January 1, 2009, the Administrator shall
promulgate regulations for the issuance, certification, and use of early
reduction allowances for greenhouse gas reduction or sequestration projects
carried out during calendar years 2000 through 2012.</text>
</paragraph><paragraph id="ID29943d2bf7994a6a9d8f2d497a0819bd"><enum>(2)</enum><header>Eligible
projects</header><text>A greenhouse gas reduction or sequestration project
shall be eligible for early reduction allowances if the project—</text>
<subparagraph id="idB9244AAA7DDF437F86FF133E1D1BD9E5"><enum>(A)</enum><text>is carried out in
the United States;</text>
</subparagraph><subparagraph id="IDe8f087f3058b41539d0fe4a3e968a869"><enum>(B)</enum><text>meets the
regulations promulgated by the Administrator under paragraph (1) that the
Administrator determines to be applicable to the project; and</text>
</subparagraph><subparagraph id="IDc7b6a576dc0b4552a526e4c2afb578d1"><enum>(C)</enum><text>was
reported—</text>
<clause id="idC00DAB0B9DB64614A1FD741C9BB040F4"><enum>(i)</enum><text>under section
1605(b) of the Energy Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/42/13385(b)">42 U.S.C. 13385(b)</external-xref>);</text>
</clause><clause id="idE5D7C4DEC7DF4B0DA387354AC22BE82F"><enum>(ii)</enum><text>under a
voluntary climate change program of the Environmental Protection Agency, such
as the Climate Leaders program; or</text>
</clause><clause id="id40DD86CBE97040129B245C4D36062AF8"><enum>(iii)</enum><text>to a State or
regional greenhouse gas registry.</text>
</clause></subparagraph></paragraph><paragraph id="IDce7c02722acf467583d77a1b06debd17"><enum>(3)</enum><header>Limitation</header><text>The
quantity of early reduction allowances available for greenhouse gas reduction
or sequestration projects in calendar years 2000 through 2012 shall not exceed
10 percent of the carbon dioxide emission tonnage limitation for calendar year
2012 under section 702(d).</text>
</paragraph></subsection><subsection id="id143CBAC3F6EB4A2691E97C75B004B422"><enum>(h)</enum><header>Use and
transfer of allowances</header>
<paragraph id="IDf67cc4fbe3ca43219fda26d2efcb50ed"><enum>(1)</enum><header>Use in other
carbon dioxide allowance trading programs</header>
<subparagraph id="id32A37F17FEEC4B73BD8A651C3ED4F3B9"><enum>(A)</enum><header>In
general</header><text>Allowances may be used in any other carbon dioxide
allowance trading program that is approved by the Administrator for use of the
allowances.</text>
</subparagraph><subparagraph id="idD2FC53C5E2294320BC8D814D0154DDF1"><enum>(B)</enum><header>Monitoring</header><text>The
Administrator shall review each transfer of an allowance into or out of the
allowance trading program under this section.</text>
</subparagraph></paragraph><paragraph id="idE43DC662AED54D26ADBDF9CA57BDB839"><enum>(2)</enum><header>Use before
applicable calendar year</header><text>Allowances may not be used before the
calendar year for which the allowance was allocated.</text>
</paragraph><paragraph id="ID5dc52eee49954e82b27d6629d99789bd"><enum>(3)</enum><header>Transfer</header>
<subparagraph id="id8C2A3CA33C414755B9AD56F02F3450F6"><enum>(A)</enum><header>In
general</header><text>Notwithstanding paragraph (2), allowances may be
transferred before the calendar year for which the allowances were
allocated.</text>
</subparagraph><subparagraph id="IDbdfb9752b6a941c3935558a17abe1a29"><enum>(B)</enum><header>Limitation</header><text>The
transfer of an allowance shall not take effect until receipt and recording by
the Administrator of a written certification of the transfer, which is executed
by an authorized official of the person making the transfer.</text>
</subparagraph></paragraph><paragraph id="IDE721E7EC17B04741B98EE14BAA97C5BF"><enum>(4)</enum><header>Use by persons
to which carbon dioxide allowances are transferred</header><text>Any person to
which carbon dioxide allowances are transferred under paragraph (3)(A) may use
the carbon dioxide allowances in the calendar year for which the carbon dioxide
allowances were allocated, or in a subsequent calendar year, to demonstrate
compliance with subsection (i)(1).</text>
</paragraph><paragraph id="ID8c70e04e79e84e029236bd10cd54aef2"><enum>(5)</enum><header>Permit
requirements</header><text>An allocation or transfer of allowances to a covered
unit shall be considered to be part of the federally enforceable permit of the
covered unit under this Act, without a requirement for further review or
revision of the permit.</text>
</paragraph></subsection><subsection id="idC540EECC1A3E4D93AD1CDAFAB9C6B8D2"><enum>(i)</enum><header>Compliance and
enforcement</header>
<paragraph id="IDf6d1d790e29947b591995d423c579e38"><enum>(1)</enum><header>In
general</header><text>For the period of calendar years 2012 and 2013, and for
each 2-calendar-year period thereafter, the owner of each covered unit shall
surrender to the Administrator a quantity of allowances that is equal to the
total tons of carbon dioxide emitted by the covered unit during the
2-calendar-year period.</text>
</paragraph><paragraph commented="no" id="idD18ED8E2729B460FBC59C28EF526B288"><enum>(2)</enum><header>Excess
emissions</header>
<subparagraph commented="no" id="id59423565A53E4B74BCF9D41EEBD5BD58"><enum>(A)</enum><header>In
general</header><text>The owner or operator of a covered unit that emits carbon
dioxide in excess of the allowances that the owner or operator holds for use
for the covered unit for the 2-calendar-year period shall—</text>
<clause commented="no" id="id4DDC80107ACF4B3BAABB46C1E5DB94F5"><enum>(i)</enum><text>pay an excess
emissions penalty determined under subparagraph (B); and</text>
</clause><clause commented="no" id="id1AF53AF3D7F14CC88569B141F31289EC"><enum>(ii)</enum><text>offset the
excess emissions by at least an equal quantity in the following 2-calendar-year
period or such other period as the Administrator shall prescribe.</text>
</clause></subparagraph><subparagraph commented="no" id="id4A134397C7F74E3996519CC77D92386B"><enum>(B)</enum><header>Determination
of excess emissions penalty</header><text>The excess emissions penalty for
carbon dioxide shall be equal to the product obtained by multiplying—</text>
<clause commented="no" id="idD167CDBE6D334CA486192FD75302C4D3"><enum>(i)</enum><text>the number of
tons of carbon dioxide emitted in excess of the total quantity of allowances
held; and</text>
</clause><clause commented="no" id="id9D4D7725CD6B441DA5908FD16F398AF5"><enum>(ii)</enum><text>2 times the
average price of a carbon dioxide allowance for the 2-calendar-year period in
which the excess emissions occurred, as determined by the Administrator.</text>
</clause></subparagraph></paragraph><paragraph id="id5EB3B65F14034876A772EE67CEF548D7"><enum>(3)</enum><header>Monitoring
system</header><text>The Administrator shall promulgate regulations
requiring—</text>
<subparagraph id="idA880AEB0F0E64A9E83FACC9902F4E5E1"><enum>(A)</enum><text>operation,
reporting, and certification of continuous emissions monitoring systems to
accurately measure the quantity of carbon dioxide that is emitted from each
covered unit; and</text>
</subparagraph><subparagraph id="idEF4A29EE25504D49892AD5C830CD7FFB"><enum>(B)</enum><text>verification and
reporting of carbon dioxide emissions at each covered unit.</text>
</subparagraph></paragraph><paragraph id="id0CB73E84EA4D4D70BBE80FE1D71B403C"><enum>(4)</enum><header>Reporting</header>
<subparagraph id="id3C8C9DD00E83420FA1119C200C1E2690"><enum>(A)</enum><header>In
general</header><text>Not less often than quarterly, the owner or operator of a
covered unit shall submit to the Administrator a report on the monitoring of
emissions of carbon dioxide carried out by the owner or operator in accordance
with the regulations promulgated under paragraph (3).</text>
</subparagraph><subparagraph id="idF7BCE52EB4E44C4DA4CD3A5F45EB7155"><enum>(B)</enum><header>Authorization</header><text>Each
report submitted under subparagraph (A) shall be authorized by a responsible
official of the covered unit, who shall certify the accuracy of the
report.</text>
</subparagraph><subparagraph id="id8F8BFA58F20F4727B809E5C60B838E19"><enum>(C)</enum><header>Public
reporting</header><text>The Administrator shall make available to the public,
through 1 or more published reports and 1 or more forms of electronic media,
data concerning the emission of carbon dioxide from each covered unit.</text>
</subparagraph></paragraph></subsection><subsection id="id71E37ED7578F42A9A0E1C424EE76A4ED"><enum>(j)</enum><header>Allowance not a
property right</header><text display-inline="yes-display-inline">An
allowance—</text>
<paragraph id="idEE9B5551653D4A6490763F19DFD99852"><enum>(1)</enum><text>is not a property
right; and</text>
</paragraph><paragraph id="id4D72A725EF60461C852EC9A399C2ECDE"><enum>(2)</enum><text>may be terminated
or limited by the Administrator.</text>
</paragraph></subsection><subsection id="idE87E938A89F44B32B315730950528C66"><enum>(k)</enum><header>No judicial
review</header><text display-inline="yes-display-inline">An allocation or
issuance of an allowance by the Administrator shall not be subject to judicial
review.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="ID1aa1022958624b1f8305e606543c8482" section-type="subsequent-section"><enum>706.</enum><header display-inline="yes-display-inline">Distribution of allowances between auctions
and allocations; nature of allowances</header>
<subsection commented="no" display-inline="no-display-inline" id="ID4e0762dceac44444945c789a4910f4cf"><enum>(a)</enum><header display-inline="yes-display-inline">Distribution of allowances between auctions
and allocations</header>
<paragraph commented="no" display-inline="no-display-inline" id="IDf57df0e982c64f57be49b26844e7426a"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">For each calendar year, the total quantity
of allowances to be auctioned and allocated under this title shall be equal to
the annual tonnage limitation for emissions of greenhouse gases from affected
units specified in section 702 for the calendar year.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID25944dfb808a401ea4451ec358ce1a8f"><enum>(2)</enum><header display-inline="yes-display-inline">Distribution</header><text display-inline="yes-display-inline">The proportion of allowances to be
auctioned pursuant to section 707 and allocated pursuant to section 705 for
each calendar year beginning in calendar year 2012 shall be as follows:</text>
<table align-to-level="paragraph" blank-lines-after="0" blank-lines-before="1" frame="topbot" line-rules="hor-ver" rule-weights="4.4.4.4.0.0" subformat="S6211" table-type="3-Generic:-1-text,-1-num,-1-text">
<ttitle>Percentages of Allowances To Be Auctioned and
Allocated</ttitle>
<tgroup cols="3" grid-typeface="1.1" offset-from-left="48" thead-tbody-ldg-size="10.10.10" ttitle-size="10"><colspec align="left" coldef="txt" colname="col1" colsep="1" colwidth="46" min-data-value="30" rowsep="0"></colspec><colspec align="center" coldef="txt" colname="col2" colsep="1" colwidth="46" min-data-value="30"></colspec><colspec align="center" coldef="txt-no-ldr" colname="col3" colsep="0" colwidth="46" min-data-value="30" rowsep="0"></colspec>
<thead>
<row><entry align="center" colname="col1" rowsep="1">Calendar
year</entry><entry align="center" colname="col2" rowsep="1">Percentage to be
auctioned</entry><entry align="center" colname="col3" rowsep="1">Percentage to
be allocated</entry>
</row>
</thead>
<tbody>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">2012</entry><entry align="center" colname="col2" leader-modify="force-ldr" rowsep="0">18</entry><entry align="center" colname="col3" leader-modify="clr-ldr" rowsep="0">82</entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">2013</entry><entry align="center" colname="col2" leader-modify="force-ldr" rowsep="0">21</entry><entry align="center" colname="col3" leader-modify="clr-ldr" rowsep="0">79</entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">2014</entry><entry align="center" colname="col2" leader-modify="force-ldr" rowsep="0">24</entry><entry align="center" colname="col3" leader-modify="clr-ldr" rowsep="0">76</entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">2015</entry><entry align="center" colname="col2" leader-modify="force-ldr" rowsep="0">27</entry><entry align="center" colname="col3" leader-modify="clr-ldr" rowsep="0">73</entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">2016</entry><entry align="center" colname="col2" leader-modify="force-ldr" rowsep="0">30</entry><entry align="center" colname="col3" leader-modify="clr-ldr" rowsep="0">70</entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">2017</entry><entry align="center" colname="col2" leader-modify="force-ldr" rowsep="0">33</entry><entry align="center" colname="col3" leader-modify="clr-ldr" rowsep="0">67</entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">2018</entry><entry align="center" colname="col2" leader-modify="force-ldr" rowsep="0">36</entry><entry align="center" colname="col3" leader-modify="clr-ldr" rowsep="0">64</entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">2019</entry><entry align="center" colname="col2" leader-modify="force-ldr" rowsep="0">39</entry><entry align="center" colname="col3" leader-modify="clr-ldr" rowsep="0">61</entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">2020</entry><entry align="center" colname="col2" leader-modify="force-ldr" rowsep="0">42</entry><entry align="center" colname="col3" leader-modify="clr-ldr" rowsep="0">58</entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">2021</entry><entry align="center" colname="col2" leader-modify="force-ldr" rowsep="0">45</entry><entry align="center" colname="col3" leader-modify="clr-ldr" rowsep="0">55</entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">2022</entry><entry align="center" colname="col2" leader-modify="force-ldr" rowsep="0">48</entry><entry align="center" colname="col3" leader-modify="clr-ldr" rowsep="0">52</entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">2023</entry><entry align="center" colname="col2" leader-modify="force-ldr" rowsep="0">51</entry><entry align="center" colname="col3" leader-modify="clr-ldr" rowsep="0">49</entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">2024</entry><entry align="center" colname="col2" leader-modify="force-ldr" rowsep="0">54</entry><entry align="center" colname="col3" leader-modify="clr-ldr" rowsep="0">46</entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">2025</entry><entry align="center" colname="col2" leader-modify="force-ldr" rowsep="0">57</entry><entry align="center" colname="col3" leader-modify="clr-ldr" rowsep="0">43</entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">2026</entry><entry align="center" colname="col2" leader-modify="force-ldr" rowsep="0">60</entry><entry align="center" colname="col3" leader-modify="clr-ldr" rowsep="0">40</entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">2027</entry><entry align="center" colname="col2" leader-modify="force-ldr" rowsep="0">63</entry><entry align="center" colname="col3" leader-modify="clr-ldr" rowsep="0">37</entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">2028</entry><entry align="center" colname="col2" leader-modify="force-ldr" rowsep="0">66</entry><entry align="center" colname="col3" leader-modify="clr-ldr" rowsep="0">34</entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">2029</entry><entry align="center" colname="col2" leader-modify="force-ldr" rowsep="0">69</entry><entry align="center" colname="col3" leader-modify="clr-ldr" rowsep="0">41</entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">2030</entry><entry align="center" colname="col2" leader-modify="force-ldr" rowsep="0">72</entry><entry align="center" colname="col3" leader-modify="clr-ldr" rowsep="0">28</entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">2031</entry><entry align="center" colname="col2" leader-modify="force-ldr" rowsep="0">75</entry><entry align="center" colname="col3" leader-modify="clr-ldr" rowsep="0">25</entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">2032</entry><entry align="center" colname="col2" leader-modify="force-ldr" rowsep="0">80</entry><entry align="center" colname="col3" leader-modify="clr-ldr" rowsep="0">20</entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">2033</entry><entry align="center" colname="col2" leader-modify="force-ldr" rowsep="0">85</entry><entry align="center" colname="col3" leader-modify="clr-ldr" rowsep="0">15</entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">2034</entry><entry align="center" colname="col2" leader-modify="force-ldr" rowsep="0">90</entry><entry align="center" colname="col3" leader-modify="clr-ldr" rowsep="0">10</entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">2035</entry><entry align="center" colname="col2" leader-modify="force-ldr" rowsep="0">95</entry><entry align="center" colname="col3" leader-modify="clr-ldr" rowsep="0">5</entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">2036 and
thereafter</entry><entry align="center" colname="col2" leader-modify="force-ldr" rowsep="0">100</entry><entry align="center" colname="col3" leader-modify="clr-ldr" rowsep="0">0</entry>
</row>
</tbody>
</tgroup>
</table>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDf9ef53ff15e34612a5296fcabc8f18cb"><enum>(b)</enum><header display-inline="yes-display-inline">Nature of allowances</header><text display-inline="yes-display-inline">An allowance—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idF2FA877456AA43029BBF350C042EFAFE"><enum>(1)</enum><text display-inline="yes-display-inline">shall not be considered to be a property
right; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id7304884A796D420BBA13335CCA3B42B2"><enum>(2)</enum><text display-inline="yes-display-inline">may be terminated or limited by the
Administrator.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDe2d9b09b013a4218be69d738fab7c8c9"><enum>(c)</enum><header display-inline="yes-display-inline">No judicial review</header><text display-inline="yes-display-inline">An auction or allocation of an allowance by
the Administrator shall not be subject to judicial review.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="IDc5461d8bf2a24fadafa3be0762ecab22" section-type="subsequent-section"><enum>707.</enum><header display-inline="yes-display-inline">Auction of allowances</header>
<subsection commented="no" display-inline="no-display-inline" id="id92FA955B4BEF4BE39832651CE6AD8CAA"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Not later than 2 years after the date of
enactment of this title, the Administrator shall promulgate regulations
establishing a procedure for the auction of the quantity of allowances
specified in section 706(a) for each calendar year.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idDF3917010CAA4B2D8350CCACF7BBA9FA"><enum>(b)</enum><header display-inline="yes-display-inline">Deposit of proceeds</header><text display-inline="yes-display-inline">The Administrator shall deposit all
proceeds from auctions conducted under this section in the Fund for use in
accordance with section 708.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="IDda44463e0a13409f835f1e9d2eb660ca" section-type="subsequent-section"><enum>708.</enum><header display-inline="yes-display-inline">Climate Action Trust Fund</header>
<subsection commented="no" display-inline="no-display-inline" id="IDB87E6EB3E15A423C9459B522069F2D1F"><enum>(a)</enum><header display-inline="yes-display-inline">Establishment and administration</header>
<paragraph commented="no" display-inline="no-display-inline" id="id3EED2D6CA67A43CF9A82F76F1F735408"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">There is established in the general fund of
the Treasury a fund, to be known as the <term>Climate Action Trust Fund</term>,
consisting of—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="IDD2EF1B70D5204F73B84970D1BF09ABCD"><enum>(A)</enum><text display-inline="yes-display-inline">such amounts as are deposited in the Fund
under paragraph (2); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDDEF1CB6C8E834F71B796E6B85E12D28F"><enum>(B)</enum><text display-inline="yes-display-inline">any interest earned on investment of
amounts in the Fund under paragraph (4).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID75847D4BD6B24B8E83CBB81F88EF90BB"><enum>(2)</enum><header display-inline="yes-display-inline">Transfers to Fund</header><text display-inline="yes-display-inline">The Secretary of the Treasury shall deposit
in the Fund amounts equivalent to the proceeds received by the Administrator as
a result of the conduct of auctions of allowances under section 707.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID72CBA45BD1F440E4B3F4FD55F33AAC30"><enum>(3)</enum><header display-inline="yes-display-inline">Expenditures from Fund</header>
<subparagraph commented="no" display-inline="no-display-inline" id="ID1475BB464CDB4E84B16FFDF76CB44B9B"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subject to subparagraph (B), the
Administrator shall use amounts in the Fund to carry out the programs described
in this section.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID9724CABDFFA844AE9AEFD47A75CBECA6"><enum>(B)</enum><header display-inline="yes-display-inline">Administrative expenses</header><text display-inline="yes-display-inline">Of amounts in the Fund, there shall be made
available to pay the administrative expenses necessary to carry out this title,
as adjusted for changes beginning on January 1, 2007, in accordance with the
Consumer Price Index for All-Urban Consumers published by the Department of
Labor—</text>
<clause commented="no" display-inline="no-display-inline" id="idBFECA2CBA7DD4477A328C8730F8839BC"><enum>(i)</enum><text display-inline="yes-display-inline">$90,000,000 for each fiscal year, to the
Administrator; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idD0CB9B59B8934839BA8AF7B2FDE0CD22"><enum>(ii)</enum><text display-inline="yes-display-inline">$30,000,000 for each fiscal year, to the
Secretary of Agriculture.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID5603607AF5D94AF4BC15A9D3321A0821"><enum>(4)</enum><header display-inline="yes-display-inline">Investment of amounts</header>
<subparagraph commented="no" display-inline="no-display-inline" id="IDB41A9725093D45BAABBED0F22225BDF4"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Secretary of Treasury shall invest such
portion of the Fund as is not, in the judgment of the Administrator, required
to meet current withdrawals.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id6511CF2C0E1C45378F26AC70920DBAAF"><enum>(B)</enum><header display-inline="yes-display-inline">Interest-bearing obligations</header><text display-inline="yes-display-inline">Investments may be made only in
interest-bearing obligations of the United States.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID64BE379517894186B89A1201FBFD944E"><enum>(C)</enum><header display-inline="yes-display-inline">Acquisition of obligations</header><text display-inline="yes-display-inline">For the purpose of investments under
paragraph (1), obligations may be acquired—</text>
<clause commented="no" display-inline="no-display-inline" id="ID2FBB30C1FE744A27BAD9FAB522B3731C"><enum>(i)</enum><text display-inline="yes-display-inline">on original issue at the issue price;
or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID119C636409D948D786ECA703681825D8"><enum>(ii)</enum><text display-inline="yes-display-inline">by purchase of outstanding obligations at
the market price.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID41DB13A27611478D8A6149DA3B5D78BE"><enum>(D)</enum><header display-inline="yes-display-inline">Sale of obligations</header><text display-inline="yes-display-inline">Any obligation acquired by the Fund may be
sold by the Administrator at the market price.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID484E65079F0D4D97AAD686B9EEE029C8"><enum>(E)</enum><header display-inline="yes-display-inline">Return of proceeds to Fund</header><text display-inline="yes-display-inline">The interest on, and the proceeds from the
sale or redemption of, any obligations held in the Fund shall be credited to,
and form a part of, the Fund.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDedf30b596b7048aa8632f9aab5342cc3"><enum>(5)</enum><header display-inline="yes-display-inline">Regulations</header><text display-inline="yes-display-inline">Not later than 2 years after the date of
enactment of this title, the Administrator, in consultation with the Secretary
of Energy and the Secretary of Agriculture, shall promulgate such regulations
as are necessary to administer the Fund in accordance with this section.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDdbfecf4c02104ea894b7c549c1c13060"><enum>(b)</enum><header display-inline="yes-display-inline">Uses of Fund</header>
<paragraph commented="no" display-inline="no-display-inline" id="IDc47009fca2b64a73b3ce6d0a11df7014"><enum>(1)</enum><header display-inline="yes-display-inline">No further appropriation</header><text display-inline="yes-display-inline">The Administrator shall distribute amounts
in the Fund for use in accordance with this section, without further
appropriation.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID39edb8a00a334ac18735842dcc0d3fa1"><enum>(2)</enum><header display-inline="yes-display-inline">Regulations</header>
<subparagraph commented="no" display-inline="no-display-inline" id="id265480A472BF43A6A6B3C2EE66A3DAE9"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Not later than 3 years after the date of
enactment of this title, the Administrator, in consultation with the Secretary
of Energy and the Secretary of Agriculture, shall promulgate regulations
establishing an innovative low- and zero-emitting carbon technologies program,
a clean coal technologies program, a research and analysis program, and an
energy efficiency technology program that include—</text>
<clause commented="no" display-inline="no-display-inline" id="ID2b2ca738b2b04bd2b090bc5cfd08a0e3"><enum>(i)</enum><text display-inline="yes-display-inline">the funding mechanisms that will be
available to support the development and deployment of the technologies
addressed by each program, including low-interest loans, loan guarantees,
grants, and financial awards; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDdc45f52943e748f48c17eb664e9b802a"><enum>(ii)</enum><text display-inline="yes-display-inline">the criteria for the methods by which
proposals will be funded to develop and deploy the technologies.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDcb71a44f26974656b1f06eb64c4db597"><enum>(B)</enum><header display-inline="yes-display-inline">Revision of criteria</header><text display-inline="yes-display-inline">Not later than January 1, 2014, and every 3
years thereafter, the Administrator shall review and, if appropriate, revise,
based on technological advances, the criteria referred to in subparagraph
(A)(ii).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idAD32C8CB330A419E9D130F67C253A51E"><enum>(C)</enum><header display-inline="yes-display-inline">Adaptation assistance for workers and
communities</header><text display-inline="yes-display-inline">Not later than 3
years after the date of enactment of this title, the Administrator, in
consultation with the Secretary of Energy, shall promulgate regulations
governing the distribution of funds pursuant to subsection (g).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idFF584525662A4ACAA8102421700143D5"><enum>(3)</enum><header>Progress
reports</header><text>Not later than January 1, 2015, and every 5 years
thereafter, the Administrator shall prepare and submit to the President and
Congress a report containing an evaluation of the effectiveness of the
distribution of funds under this section.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID8ed2011263cb4323b6a838ef957eaaad"><enum>(c)</enum><header display-inline="yes-display-inline">Innovative low- and zero-emitting carbon
electricity generation technologies program</header>
<paragraph commented="no" display-inline="no-display-inline" id="ID4656b31125f4402aa13650474862a177"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">For each calendar year, of amounts
remaining in the Fund after making the expenditures described in subsection
(a)(3)(B), the Administrator shall use not more than 35 percent to support the
development and deployment of low- and zero-emitting carbon electricity
generation technologies.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID8d6aa5d0451a4b1ea9405a40a1d6d583"><enum>(2)</enum><header display-inline="yes-display-inline">Regulations</header><text display-inline="yes-display-inline">The regulations establishing the innovative
low- and zero-emitting carbon electricity generation technologies program
referred to in subsection (b)(2)(A) shall establish the areas of technology
development that will qualify for funding under that program, including
technologies for the generation of electricity from renewable energy
sources.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID1bb9b6f19b004cec9a328d47cf271446"><enum>(d)</enum><header display-inline="yes-display-inline">Clean coal technologies program</header>
<paragraph commented="no" display-inline="no-display-inline" id="ID02da4e0a3ad64dc68e27d5ec6857a247"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">For each calendar year, of amounts
remaining in the Fund after making the expenditures described in subsection
(a)(3)(B), the Administrator shall use not more than 20 percent to support the
development and deployment of clean coal technologies.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID98fa22f8fbe14ba6ab39da3a6bf9ad45"><enum>(2)</enum><header display-inline="yes-display-inline">Regulations</header><text display-inline="yes-display-inline">The criteria and standards established
pursuant to section 705(d)(2) to define the term <quote>clean coal
technology</quote> shall establish criteria for use of a technology in the
clean coal technologies program under subsection (b)(2)(A).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID5c6b76a6654248718fdd959215f5eba9"><enum>(e)</enum><header display-inline="yes-display-inline">Energy efficiency technology
program</header>
<paragraph commented="no" display-inline="no-display-inline" id="IDeb323096b55e46ac9f39473360c02b39"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">For each calendar year, of amounts
remaining in the Fund after making the expenditures described in subsection
(a)(3)(B), the Administrator shall use not more than 15 percent to support the
development and deployment of technologies for increasing the efficiency of
energy end use in buildings and industry.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID54ac6f0da3a94061b08bd8d97abfe530"><enum>(2)</enum><header display-inline="yes-display-inline">Regulations</header><text display-inline="yes-display-inline">The regulations establishing the energy
efficiency program referred to in subsection (b)(2)(A) shall establish the
areas of technology development that will qualify for funding under the energy
efficiency program.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID862ed966dad24a939a5f9a6940d8b9f5"><enum>(f)</enum><header display-inline="yes-display-inline">Federal funding of research into and
development of energy and efficiency technologies, carbon lifecycle analysis,
and agricultural practices</header><text display-inline="yes-display-inline">For each calendar year, the Administrator
shall use not more than 10 percent of the amounts in the Fund to support
research into and development of—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idCAAFE055A7A04F52981CF1717F1B810F"><enum>(1)</enum><text display-inline="yes-display-inline">energy and efficiency technologies;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id2876513444914FB79F3DE3009B0CCE22"><enum>(2)</enum><text display-inline="yes-display-inline">carbon lifecycle analyses of energy
generation technologies and practices; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA79A25A12BDC448AAEE6AA5D9D9A7BDA"><enum>(3)</enum><text display-inline="yes-display-inline">agricultural practices that sequester or
reduce atmospheric greenhouse gases.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID3652bac1ac364d479f93ddd69c2fd5bd"><enum>(g)</enum><header display-inline="yes-display-inline">Adaptation assistance for workers and
communities negatively affected by climate change and greenhouse gas
regulation</header><text display-inline="yes-display-inline">For each calendar
year, of amounts remaining in the Fund after making the expenditures described
in subsection (a)(3)(B), the Administrator shall use at least 10 percent to
provide adaptation assistance for workers and communities—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID75baaf30712b463b8485ed9e635d002d"><enum>(1)</enum><text display-inline="yes-display-inline">to address local or regional impacts of
climate change and the impacts, if any, from greenhouse gas regulation,
including by providing assistance to displaced workers and disproportionately
affected communities; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID9910612589a44750a1b5497ecd3d7b00"><enum>(2)</enum><text display-inline="yes-display-inline">to mitigate impacts of climate change and
the impacts, if any, from greenhouse gas regulation on low-income energy
consumers.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID3b959e72caf64925b1cd7e80fcd5eb5b"><enum>(h)</enum><header display-inline="yes-display-inline">Fish and wildlife habitat</header>
<paragraph commented="no" display-inline="no-display-inline" id="IDad782f1ca6f54f6a855e950368ad74f7"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">For each calendar year, of amounts
remaining in the Fund after making the expenditures described in subsection
(a)(3)(B), the Administrator shall use at least 10 percent to mitigate the
impacts of climate change on fish and wildlife habitat in accordance with this
subsection.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDd3a68ce83a0e43548ebdb1fad1465c3e"><enum>(2)</enum><header display-inline="yes-display-inline">Wildlife restoration fund</header>
<subparagraph commented="no" display-inline="no-display-inline" id="IDd70e5f48c593400383a164a9c6ed5686"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">For each calendar year, the Administrator
shall transfer not less than 70 percent of the amounts made available under
paragraph (1) to the Federal aid to wildlife restoration fund established under
section 3(a)(1) of the Pittman-Robertson Wildlife Restoration Act (16 U.S.C.
669b(a)(1))—</text>
<clause commented="no" display-inline="no-display-inline" id="IDcaee0115355d4e47ad4fed156ac46d21"><enum>(i)</enum><text display-inline="yes-display-inline">to carry out climate change impact
mitigation actions pursuant to comprehensive wildlife conservation strategies;
and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDea61d88f74974719a604f0147d2ff3c7"><enum>(ii)</enum><text display-inline="yes-display-inline">to provide relevant information, training,
monitoring, and other assistance to develop climate change impact mitigation
and adaptation plans and integrate the plans into State comprehensive wildlife
conservation strategies.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID92e9b56870da4be38fa4c2ae762403e8"><enum>(B)</enum><header display-inline="yes-display-inline">Availability</header><text display-inline="yes-display-inline">Amounts transferred to the Federal aid to
wildlife restoration fund under this paragraph shall—</text>
<clause commented="no" display-inline="no-display-inline" id="id8A1D7A499EDC4EACBAC2F446E78D3F8F"><enum>(i)</enum><text display-inline="yes-display-inline">be available, without further
appropriation, for obligation and expenditure; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id782117644CC64769874681C9F875CCC0"><enum>(ii)</enum><text display-inline="yes-display-inline">remain available until expended.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID2c506a24495d43829879212221eeeb06"><enum>(3)</enum><header display-inline="yes-display-inline">Protection of natural resources</header>
<subparagraph commented="no" display-inline="no-display-inline" id="IDf1190e80d6dd429b991088455840f9d8"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">For each calendar year, the Administrator,
in consultation with the Secretary of Agriculture, the Secretary of Commerce,
the Chief of Engineers, and State and national wildlife conservation
organizations, shall transfer not more than 30 percent of the funds made
available under paragraph (1) to the Secretary of the Interior for use in
carrying out Federal and State programs and projects—</text>
<clause commented="no" display-inline="no-display-inline" id="ID9d4224a439244429aefa9106562ff8e3"><enum>(i)</enum><text display-inline="yes-display-inline">to protect natural communities that are
most vulnerable to climate change;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID8917f6a9002e4224b9dc87617ede5108"><enum>(ii)</enum><text display-inline="yes-display-inline">to restore and protect natural resources
that directly guard against damages from climate change events; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDce0b831d7f7c48e8b630e581ede420fb"><enum>(iii)</enum><text display-inline="yes-display-inline">to restore and protect ecosystem services
that are most vulnerable to climate change.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDe8f71412cc9543f49bd87fa86181febd"><enum>(B)</enum><header display-inline="yes-display-inline">Administration</header><text display-inline="yes-display-inline">Amounts transferred to the Secretary of the
Interior under this paragraph shall—</text>
<clause commented="no" display-inline="no-display-inline" id="ID057d80d119e44fee976f1f7521693ecf"><enum>(i)</enum><text display-inline="yes-display-inline">be available, without further
appropriation, for obligation and expenditure;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id52C2C3A0201046108EF207F6D36C0447"><enum>(ii)</enum><text display-inline="yes-display-inline">remain available until expended;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDb438987ebf474679b67eb3c9c620b885"><enum>(iii)</enum><subclause commented="no" display-inline="yes-display-inline" id="idBDC0189B1FE440198827701D40B52F6B"><enum>(I)</enum><text display-inline="yes-display-inline">be obligated not later than 2 years after
the date of transfer; or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID91821e68575e4980bdbb960865866b59" indent="up1"><enum>(II)</enum><text display-inline="yes-display-inline">if the amounts are not obligated in
accordance with subclause (I), be transferred to the Federal aid to wildlife
restoration fund for use in accordance with paragraph (2); and</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="ID83778dcfdc97455aa0abc67044fc1bfe"><enum>(iv)</enum><text display-inline="yes-display-inline">supplement, and not supplant, the amount of
Federal, State, and local funds otherwise expended to carry out programs and
projects described in subparagraph (A).</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDf186a07e6b4c4248a6a69206f64b753a"><enum>(C)</enum><header display-inline="yes-display-inline">Programs and projects</header><text display-inline="yes-display-inline">Programs and projects for which funds may
be used under this paragraph include—</text>
<clause commented="no" display-inline="no-display-inline" id="ID27e635cfe2b74d8f9017d6359a66ef9c"><enum>(i)</enum><text display-inline="yes-display-inline">Federal programs and projects—</text>
<subclause commented="no" display-inline="no-display-inline" id="ID8c8dec5efbb940b1b7e9cbecc5d6d7f9"><enum>(I)</enum><text display-inline="yes-display-inline">to identify Federal land and water at
greatest risk of being damaged or depleted by climate change;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID0126bb58cd19452a9f752459513dfbc5"><enum>(II)</enum><text display-inline="yes-display-inline">to monitor Federal land and water to allow
for early detection of impacts;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="IDfcdc6b78efc742c59bcffe6456b03e5c"><enum>(III)</enum><text display-inline="yes-display-inline">to develop adaptation strategies to
minimize the damage; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="IDaf4e8ff5e5d64ed9b7f89e919a357ba7"><enum>(IV)</enum><text display-inline="yes-display-inline">to restore and protect Federal land and
water at the greatest risk of being damaged or depleted by climate
change;</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="ID2ffc92dcf1df4cfc8b270a7c47931634"><enum>(ii)</enum><text display-inline="yes-display-inline">Federal programs and projects to identify
climate change risks and develop adaptation strategies for natural grassland,
wetlands, migratory corridors, and other habitats vulnerable to climate change
on private land enrolled in—</text>
<subclause commented="no" display-inline="no-display-inline" id="ID6747a247d3f14b12bb48582a6099edd3"><enum>(I)</enum><text display-inline="yes-display-inline">the wetlands reserve program established
under subchapter C of chapter 1 of subtitle D of title XII of the Food Security
Act of 1985 (16 U.S.C. 3837 et seq.);</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID64491d9b3fb648b0a5bfc4aac0fba3b6"><enum>(II)</enum><text display-inline="yes-display-inline">the grassland reserve program established
under subchapter C of chapter 2 of subtitle D of title XII of that Act (16
U.S.C. 3838n et seq.); and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID326a9413a052473db99ee023570cad30"><enum>(III)</enum><text display-inline="yes-display-inline">the wildlife habitat incentive program
established under section 1240N of that Act (16 U.S.C. 3839bb–1);</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="IDee6e7b969ab5485fae372aa1d7bfdb30"><enum>(iii)</enum><text display-inline="yes-display-inline">programs and projects under the North
American Wetlands Conservation Act (16 U.S.C. 4401 et seq.), the North American
Bird Conservation Initiative, and the Neotropical Migratory Bird Conservation
Act (16 U.S.C. 6101 et seq.) to protect habitat for migratory birds that are
vulnerable to climate change impacts;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID11f8a8a3561640c6a482e571656abf8d"><enum>(iv)</enum><text display-inline="yes-display-inline">programs and projects—</text>
<subclause commented="no" display-inline="no-display-inline" id="ID8afb4461e51548ea9e389eedf5e4eae2"><enum>(I)</enum><text display-inline="yes-display-inline">to identify coastal and marine resources
(such as coastal wetlands, coral reefs, submerged aquatic vegetation, shellfish
beds, and other coastal or marine ecosystems) at the greatest risk of being
damaged by climate change;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="IDf6eceea133694ded8cc9a0cca0947d7c"><enum>(II)</enum><text display-inline="yes-display-inline">to monitor those resources to allow for
early detection of impacts;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID33d4fbfb682949eb813d9cb35ec5ad6d"><enum>(III)</enum><text display-inline="yes-display-inline">to develop adaptation strategies;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID25c76a4501bf4502a5cc231883b44e43"><enum>(IV)</enum><text display-inline="yes-display-inline">to protect and restore those resources;
and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID5f20c435df6349f7ae1c78982101f571"><enum>(V)</enum><text display-inline="yes-display-inline">to integrate climate change adaptation
requirements into State plans developed under the coastal zone management
program established under the Coastal Zone Management Act of 1972 (16 U.S.C.
1451 et seq.), the national estuary program established under section 320 of
the Federal Water Pollution Control Act (33 U.S.C. 1330), the Coastal and
Estuarine Land Conservation Program established under the fourth proviso of the
matter under the heading <quote><header-in-text level="paragraph" style="OLC">procurement, acquisition, and construction (including transfers of
funds)</header-in-text></quote> of title II of the Departments of Commerce,
Justice, and State, the Judiciary, and Related Agencies Appropriations Act,
2002 (16 U.S.C. 1456d), or other comparable State programs;</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="ID3693a5a3dda4409b9c041abdf29e5f8b"><enum>(v)</enum><text display-inline="yes-display-inline">programs and projects to conserve habitat
for endangered species and species of conservation concern that are vulnerable
to the impact of climate change;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID48dfe7b5b7b44c4495b2683d5374842c"><enum>(vi)</enum><text display-inline="yes-display-inline">programs and projects under the Forest
Legacy Program established under section 7 of the Cooperative Forestry
Assistance Act (16 U.S.C. 2103c), to support State efforts to protect
environmentally sensitive forest land through conservation easements to provide
refuges for wildlife;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDceeb6f9c1fad4b7085aee833c8b8fc91"><enum>(vii)</enum><text display-inline="yes-display-inline">other Federal or State programs and
projects identified by the heads of agencies described in subparagraph (A) as
high priorities—</text>
<subclause commented="no" display-inline="no-display-inline" id="ID7d6872d26357493997b53d25f2c4ea2d"><enum>(I)</enum><text display-inline="yes-display-inline">to protect natural communities that are
most vulnerable to climate change;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID4e4b7cb47b914ada87693245eac9771c"><enum>(II)</enum><text display-inline="yes-display-inline">to restore and protect natural resources
that directly guard against damages from climate change events; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID6e2d8f6ab373486ba0f53137c20465de"><enum>(III)</enum><text display-inline="yes-display-inline">to restore and protect ecosystem services
that are most vulnerable to climate change;</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="IDae036bcae93145c8b1e3b8481a391cb4"><enum>(viii)</enum><text display-inline="yes-display-inline">to address climate change in Federal land
use planning and plan implementation and to integrate climate change adaptation
strategies into—</text>
<subclause commented="no" display-inline="no-display-inline" id="ID010bb2c76abb40e8a60405c04430f9fd"><enum>(I)</enum><text display-inline="yes-display-inline">comprehensive conservation plans prepared
under section 4(e) of the National Wildlife Refuge System Administration Act of
1966 (16 U.S.C. 668dd(e));</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID14ed93e748514096973e6d7b1558e52d"><enum>(II)</enum><text display-inline="yes-display-inline">general management plans for units of the
National Park System;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID786c03c716114de599bc127499bd192b"><enum>(III)</enum><text display-inline="yes-display-inline">resource management plans of the Bureau of
Land Management; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID4ab7c74b94134102be2cbab285893185"><enum>(IV)</enum><text display-inline="yes-display-inline">land and resource management plans under
the Forest and Rangeland Renewable Resources Planning Act of 1974 (16 U.S.C.
1600 et seq.) and the National Forest Management Act of 1976 (16 U.S.C. 1600 et
seq.); and</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="ID0e8d841a68cb4a469272326889250e13"><enum>(ix)</enum><text display-inline="yes-display-inline">projects to promote sharing of information
on climate change wildlife impacts and mitigation strategies across agencies,
including funding efforts to strengthen and restore habitat that improves the
ability of fish and wildlife to adapt successfully to climate change through
the Wildlife Conservation and Restoration Account established by section
3(a)(2) of the Pittman-Robertson Wildlife Restoration Act (16 U.S.C.
669b(a)(2)).</text>
</clause></subparagraph></paragraph></subsection></section>.
4.New source
review programSection 165 of
the Clean Air Act (42 U.S.C. 7475) is
amended by adding at the end the following:
(f)Revisions to
new source review program
(1)In
this subsection:
(A)The term affected unit has the meaning given
the term in section 701.
(B)New source
review programThe term new source review program
means the program to carry out this part and part D.
(2)
(A)Except as provided in subparagraph (B), beginning January
1, 2020, and on each January 1 thereafter, each affected unit that has been in
operation 40 or more years as of that January 1, and that operates for more
than 500 hours per calendar year, shall meet performance standards of—
(i)2
lbs/MWh for sulfur dioxide; and
(ii)1 lbs/MWh for
nitrogen oxides.
(B)
(i)Notwithstanding subparagraph (A), an affected unit that,
as of January 1, 2020, is required to meet a more stringent performance
standard than the applicable standard under subparagraph (A) shall continue to
meet the more stringent standard.
(ii)Modification
of affected unitsThe requirements of this section shall not
affect in any way any requirement under section 111(a)(4), this part, or part D
governing modifications of major stationary sources.
(3)No effect on
other requirements and retention of State authorityNothing in
this subsection affects—
(A)any State
authority under section 116; or
(B)the obligation of
any State or local government or any major emitting facility to comply with the
requirements of this
section.
.
5.Revisions to
sulfur dioxide allowance program
(a)Title IV of the Clean Air
Act (relating to acid deposition control) (42 U.S.C. 7651 et
seq.) is amended by adding at the end the following:
417.Revisions to
sulfur dioxide allowance program
(a)In
this section, the terms affected unit and new unit
have the meanings given the terms in section 701.
(b)Not
later than January 1, 2008, the Administrator shall promulgate such revisions
to the regulations to implement this title as the Administrator determines to
be necessary to implement section 702(a).
(c)
(1)Subject
to the annual tonnage limitation for emissions of sulfur dioxide from affected
units specified in section 702(a), the Administrator shall establish by
regulation a reserve of allowances to be set aside for use by new units.
(2)Determination
of quantityThe Administrator, in consultation with the Secretary
of Energy, shall determine, based on projections of electricity output for new
units—
(A)not later than
June 30, 2008, the quantity of allowances required to be held in reserve for
new units for each of calendar years 2012 through 2014; and
(B)not later than
June 30 of each fifth calendar year thereafter, the quantity of allowances
required to be held in reserve for new units for the following 5-calendar year
period.
(3)
(A)The
Administrator shall promulgate regulations to establish a methodology for
allocating allowances to new units.
(B)An allocation of allowances by the Administrator under
this subsection shall not be subject to judicial review.
(d)
(1)
(A)Subject
to the annual tonnage limitation for emissions of sulfur dioxide from affected
units specified in section 702(a), and subject to the reserve of allowances for
new units under subsection (c), the Administrator shall promulgate regulations
to govern the allocation of allowances to affected units that are not new
units.
(B)The regulations shall provide for—
(i)the allocation of
allowances on a fair and equitable basis between affected units that received
allowances under section 405 and affected units that are not new units and that
did not receive allowances under that section, using for both categories of
units the same or similar allocation methodology as was used under section 405;
and
(ii)the pro-rata
distribution of allowances to all units described in clause (i), subject to the
annual tonnage limitation for emissions of sulfur dioxide from affected units
specified in section 702(a).
(2)The Administrator shall allocate allowances to
affected units—
(A)not later than
December 31, 2007, for calendar years 2010 and 2011; and
(B)not later than
December 31 of calendar year 2008 and each calendar year thereafter, for the
fourth calendar year that begins after that December 31.
(3)An allocation of allowances by the Administrator under
this subsection shall not be subject to judicial
review.
.
(b)Section 402 of the
Clean Air Act (relating to acid
deposition control) (42 U.S.C. 7651a) is amended by
striking paragraph (3) and inserting the following:
(3)The
term allowance means an authorization, allocated by the
Administrator to an affected unit under this title, to emit, during or after a
specified calendar year, a quantity of sulfur dioxide determined by the
Administrator and specified in the regulations promulgated under section
417(b).
.
(c)Section 411 of the Clean Air Act (relating to acid
deposition control) (42 U.S.C. 7651j) is amended by striking subsections (a)
and (b) and inserting the following:
(a)The owner or operator of a new unit or an affected unit
that emits sulfur dioxide in excess of the sulfur dioxide allowances that the
owner or operator holds for use for the new unit or affected unit for the
calendar year shall—
(1)pay an excess
emissions penalty determined under subsection (b); and
(2)offset the excess
emissions by at least an equal quantity in the following calendar year or such
other period as the Administrator shall prescribe.
(b)Determination
of excess emissions penalty
(1)The excess emissions penalty for sulfur dioxide shall be
equal to the product obtained by multiplying—
(A)the quantity of
sulfur dioxide emitted in excess of the total quantity of sulfur dioxide
allowances held; and
(B)2 times the
average price of a sulfur dioxide allowance for the calendar year in which the
excess emissions occurred, as determined by the Administrator.
(2)An
excess emissions penalty under paragraph (1)—
(A)shall be due and
payable without demand to the Administrator, in accordance with applicable
regulations promulgated by the Administrator, by not later than 18 months after
the date of enactment of the Clean Air
Planning Act of 2007; and
(B)shall not
diminish the liability of the owner or operator of the affected unit with
respect to any fine, penalty, or assessment applicable to the affected unit for
the same violation under any other provision of this
Act.
.
(d)
(1)Title IV of the
Clean Air Act (relating to noise
pollution) (42
U.S.C. 7641 et seq.)—
(A)is amended by
redesignating sections 401 through 403 as sections 801 through 803,
respectively; and
(B)is redesignated
as title VIII and moved to appear at the end of that Act.
(2)The table of
contents for title IV of the Clean Air
Act (relating to acid deposition control) (42 U.S.C. prec. 7651) is
amended by adding at the end the following:
Sec. 417. Revisions to sulfur dioxide
allowance
program.
.
6.Environmental
Protection Agency program to reduce carbon dioxide from new coal-fired electric
generating unitsSection 111
of the Clean Air Act (42 U.S.C. 7411) is amended by adding at the end the
following:
(k)Standards of
performance for new electric generating units
(1)
(A)Each covered unit that commences operation on or after
January 1, 2015, shall meet the following standards of performance:
(i)For each of
calendar years 2015 through 2025, an emission limitation of 1,100 pounds of
carbon dioxide per megawatt-hour or less.
(ii)For calendar
year 2025 and each calendar year thereafter, an emission limitation of 285
pounds of carbon dioxide per megawatt-hour or less.
(B)
(i)Not later than January 1, 2015, and every 5 years
thereafter, the Administrator shall complete a review of the standard of
performance under subparagraph (A) (or a modified standard, if applicable) to
determine whether the standard requires revision, based on the best available
technological system of continuous emission reduction on the date on which the
review is conducted.
(ii)The
Administrator shall publish each determination under clause (i) not later than
the deadline for the determination under that clause.
(iii)A
determination of the Administrator under clause (i) shall be considered to be a
final agency action for purposes of section 307(b)(1).
(2)Treatment of
certain carbon dioxideCarbon dioxide that is injected into a
geological formation in a manner that prevents any release of the carbon
dioxide into the atmosphere shall not be considered to be a carbon dioxide
emission from an electric generating unit for purposes of meeting an applicable
standard under paragraph
(1).
.
7.Relationship to
other law
(a)Regulation of
hazardous air pollutantsSection 112(n)(1) of the Clean Air Act
(42 U.S.C. 7412(n)(1)) is amended by striking subparagraph (A) and inserting
the following:
(A)
(i)Not later than 18 months after the date of enactment of
the Clean Air Planning Act of
2007, the Administrator shall promulgate regulations under this
section limiting the emission from electric utility steam generating units of
hazardous air pollutants, other than mercury, as the Administrator determines
to be appropriate and necessary in accordance with the standards under this
section, including subsections (b)(2) and (f).
(ii)The
regulations under clause (i) shall—
(I)require
compliance with applicable standards as expeditiously as practicable, but not
later than 3 years after the effective date of the regulations; and
(II)be in accordance
with other applicable requirements under this section.
(iii)The regulations under clause (i) shall be effective on the
date of promulgation of the
regulations.
.
(b)No effect on
other Federal and State requirementsExcept as otherwise
specifically provided in this Act, nothing in this Act or an amendment made by
this Act—
(1)affects any
permitting, monitoring, or enforcement obligation of the Administrator of the
Environmental Protection Agency under the Clean
Air Act (42 U.S.C. 7401 et seq.) or any
remedy provided under that Act;
(2)affects any
requirement applicable to, or liability of, an electric generating facility
under that Act;
(3)requires a change
in, affects, or limits any State law that regulates electric utility rates or
charges, including prudence review under State law; or
(4)precludes a State
or political subdivision of a State from adopting and enforcing any requirement
for the control or abatement of air pollution, except that a State or political
subdivision may not adopt or enforce any emission standard or limitation that
is less stringent than the requirements imposed under that Act.