Enforcement for select areas for failure to attain

(a)

Ozone

Section 185 of the Clean Air Act (42 U.S.C. 7511d) is amended— (1)by striking the section designation and heading and inserting the following:

185.

Enforcement for select areas for failure to attain

;

(2)in the first sentence of subsection (a), by striking Each implementation and inserting Except as provided in subsection (f), each implementation; and (3)by adding at the end the following:

(f)

Ozone attainment in covered areas

(1)

Definitions

In this subsection: (A)

Attainment year

The term attainment year, with respect to a covered area, means the calendar year during which the covered area is required to attain the standard for ozone described in the final rule. (B)

Baseline quantity

The term baseline quantity means, for any attainment year, the lesser of— (i)the quantity of actual VOC or NOx emissions of a stationary source; or (ii)(I)the quantity of VOC or NOx emissions allowed under a permit applicable to a stationary source; or (II)if no such permit has been issued for the attainment year, the quantity of those emissions allowed under the applicable State implementation plan during the attainment year. (C)

Covered area

The term covered area has the meaning given the term in section 179(e). (D)

Final rule

The term final rule means the final rule entitled Air Quality Designations and Classifications for the 8-Hour Ozone National Ambient Air Quality Standards; Early Action Compact Areas With Deferred Effective Dates (69 Fed. Reg. 23858 (April 30, 2004)). (2)

Implementation plan revision

(A)

In general

Each implementation plan revision required under subsection (c), (d), or (e) of section 182 (relating to the attainment plans for Serious, Severe, and Extreme Areas, respectively) shall— (i)provide that, if the area to which the plan revision applies is a covered area, each major stationary source that emits VOCs or NOx and that is located in the covered area shall pay to the Administrator a fee in an amount calculated under subparagraph (B) as a penalty for the failure to attain the standard for ozone by the applicable attainment date specified in the final rule; and (ii)include procedures for the assessment and collection of those fees. (B)

Amount of fee

The amount of a fee paid under this subsection for each ton of VOCs or NOx emitted by a major stationary source in a covered area in nonattainment during a calendar year in excess of 70 percent of the baseline quantity shall be (based on classifications of Serious, Severe, and Extreme Areas in effect as of December 31, 2006, and as adjusted annually in accordance with section 502(b)(3)(B)(v)) (relating to inflation adjustment)— (i)with respect to a ton of VOCs— (I)in a Serious Area, $10,000; (II)in a Severe Area, $20,000; and (III)in an Extreme Area, $30,000; and (ii)with respect to a ton of NOx, $5,000, regardless of whether the NOx is emitted in a Serious, Severe, or Extreme Area. (3)

Penalties for failure to make progress toward attainment in covered areas

(A)

In general

Upon approval of a State implementation plan that covers a covered area, and annually thereafter until the applicable deadline by which the covered area is required to achieve attainment, as specified in section 181(a) and as updated by the final rule, the Administrator shall determine, in accordance with subparagraph (B), whether the covered area is making progress that is sufficient to enable the covered area to achieve attainment by that deadline. (B)

Determination of progress

The Administrator shall not determine under subparagraph (A) that a covered area is making sufficient progress toward achieving attainment for any calendar year unless the Administrator determines, at a minimum, that the covered area has achieved a reduction in the aggregate quantity of VOCs or NOx emitted in the covered area for the calendar year that is equal to or greater than the product obtained by multiplying— (i)the aggregate quantity, in tons, of the VOC or NOx emission reductions, respectively, that are required, during the period beginning on the date of the determination by the Administrator and ending on the applicable date referred to in subparagraph (A), to achieve attainment; by (ii)the quotient obtained by dividing— (I)the number of months, rounded to the nearest month, between the date of submission of the State implementation plan applicable to the covered area and the date of the determination by the Administrator; by (II)the number of months, rounded to the nearest month, between the date of submission of that State implementation plan and the applicable attainment date referred to in subparagraph (A). (C)

Imposition of penalties

If the Administrator determines under this paragraph that a covered area is not making sufficient progress to enable the covered area to achieve attainment by the applicable deadline referred to in subparagraph (A), the Administrator shall— (i)for the first calendar year for which the determination is made, impose on each major stationary source located in the covered area a penalty in an amount that is equal to 10 percent of the amount of the fee that, based on whether the major stationary source is located in a Serious, Severe, or Extreme Area, would be paid by the major stationary source under paragraph (2)(B) for failure to meet a national primary ambient air quality standard for ozone by the deadline referred to in subparagraph (A); and (ii)for each subsequent calendar year until the deadline referred to in subparagraph (A)— (I)reevaluate the progress being made by the covered area toward achieving attainment by the deadline referred to in subparagraph (A); and (II)if the Administrator determines that the covered area is not making sufficient progress, impose on each major stationary source located in the covered area a penalty in an amount that is equal to the sum of the penalty imposed on the same class (with respect to location in a Serious, Severe, or Extreme Area) of major stationary source under clause (i) and the product obtained by multiplying— (aa)5 percent of the fee that, based on whether the major stationary source is located in a Serious, Severe, or Extreme Area, would be paid by the major stationary source under paragraph (2)(B) for failure to meet a national primary ambient air quality standard for ozone by the deadline referred to in subparagraph (A); and (bb)the number of calendar years for which the covered area has been previously determined not to have made sufficient progress under this paragraph as of the date of the determination by the Administrator (excluding the determination for the current calendar year). (D)

Suspension of penalties

If the Administrator determines under this paragraph that a covered area that was determined not to be making sufficient progress toward attainment under this paragraph for a preceding calendar year is making sufficient progress toward attainment for the current calendar year, the Administrator shall suspend the imposition of penalties on major stationary sources located in the covered area for the current calendar year.

(b)

Particulate matter

Section 188 of the Clean Air Act (42 U.S.C. 7513) is amended by adding at the end the following:

(g)

Particulate matter attainment in covered areas

(1)

Definitions

In this subsection: (A)

Attainment year

The term attainment year, with respect to a covered area, means the calendar year during which the covered area is required to attain the standard for PM2.5 described in the final rules. (B)

Baseline quantity

The term baseline quantity means, for any attainment year, the lesser of— (i)the quantity of actual PM2.5 emissions of a stationary source; or (ii)(I)the quantity of PM2.5 emissions allowed under a permit applicable to a stationary source; or (II)if no such permit has been issued for the attainment year, the quantity of those emissions allowed under the applicable State implementation plan during the attainment year. (C)

Covered area

The term covered area has the meaning given the term in section 179(e). (D)

Final rules

The term final rules means— (i)the final rule entitled Air Quality Designations and Classifications for the Fine Particles (PM2.5) National Ambient Air Quality Standards (70 Fed. Reg. 944 (January 5, 2005)); and (ii)the final version of the proposed rule entitled National Ambient Air Quality Standards for Particulate Matter, Part II (71 Fed. Reg. 2620 (January 17, 2006)). (E)

PM2.5

The term PM2.5 means particulate matter the aerodynamic diameter of which is less than or equal to 2.5 micrometers. (2)

Implementation plan revision

(A)

In general

Each implementation plan revision required under section 110 shall— (i)provide that, if the area to which the plan revision applies is a covered area, each major stationary source that emits PM2.5 and that is located in the covered area shall pay to the Administrator a fee in an amount calculated under subparagraph (B) as a penalty for the failure to attain the standard for PM2.5 in the final rules by the applicable attainment date specified in the final rules; and (ii)include procedures for the assessment and collection of those fees. (B)

Amount of fee

The amount of a fee paid under this subsection for each ton of PM2.5 emitted by a major stationary source in a covered area in nonattainment during a calendar year in excess of 70 percent of the baseline quantity shall be, as adjusted annually in accordance with section 502(b)(3)(B)(v) (relating to inflation adjustment), $50,000. (3)

Penalties for failure to make progress toward attainment in covered areas

(A)

In general

Upon approval of a State implementation plan that covers a covered area, and annually thereafter until the applicable deadline by which the covered area is required to achieve attainment, as specified in the final rules, the Administrator shall determine, in accordance with subparagraph (B), whether the covered area is making progress that is sufficient to enable the covered area to achieve attainment by that deadline. (B)

Determination of progress

The Administrator shall not determine under subparagraph (A) that a covered area is making sufficient progress toward achieving attainment for any calendar year unless the Administrator determines, at a minimum, that the covered area has achieved a reduction in the aggregate quantity of PM2.5 emitted in the covered area for the calendar year that is equal to or greater than the product obtained by multiplying— (i)the aggregate quantity, in tons, of the PM2.5 emission reductions that are required, during the period beginning on the date of the determination by the Administrator and ending on the applicable date referred to in subparagraph (A), to achieve attainment; by (ii)the quotient obtained by dividing— (I)the number of months, rounded to the nearest month, between the date of submission of the State implementation plan applicable to the covered area and the date of the determination by the Administrator; by (II)the number of months, rounded to the nearest month, between the date of submission of that State implementation plan and the applicable attainment date referred to in subparagraph (A). (C)

Imposition of penalties

If the Administrator determines under this paragraph that a covered area is not making sufficient progress to enable the covered area to achieve attainment by the applicable deadline referred to in subparagraph (A), the Administrator shall— (i)for the first calendar year for which the determination is made, impose on each major stationary source located in the covered area a penalty in an amount that is equal to 10 percent of the amount of the fee that would be paid by the major stationary source under paragraph (2)(B) for failure to meet a national primary ambient air quality standard for PM2.5 by the deadline referred to in subparagraph (A); and (ii)for each subsequent calendar year until the deadline referred to in subparagraph (A)— (I)reevaluate the progress being made by the covered area toward achieving attainment by the deadline referred to in subparagraph (A); and (II)if the Administrator determines that the covered area is not making sufficient progress, impose on each major stationary source located in the covered area a penalty in an amount that is equal to the sum of the penalty imposed on the same class of major stationary source under clause (i) and the product obtained by multiplying— (aa)5 percent of the fee that would be paid by the major stationary source under paragraph (2)(B) for failure to meet a national primary ambient air quality standard for PM2.5 by the deadline referred to in subparagraph (A); and (bb)the number of calendar years for which the covered area has been previously determined not to have made sufficient progress under this paragraph as of the date of the determination by the Administrator (excluding the determination for the current calendar year). (D)

Suspension of penalties