[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 3826 Introduced in Senate (IS)]

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118th CONGRESS
  2d Session
                                S. 3826

     To amend the Clean Air Act to revise the treatment of certain 
resilience actions and natural disasters, to limit the issuance of new 
       standards for criteria pollutants, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 28, 2024

Mr. Cassidy (for himself and Ms. Sinema) introduced the following bill; 
 which was read twice and referred to the Committee on Environment and 
                              Public Works

_______________________________________________________________________

                                 A BILL


 
     To amend the Clean Air Act to revise the treatment of certain 
resilience actions and natural disasters, to limit the issuance of new 
       standards for criteria pollutants, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Modernizing Clean Air Permitting Act 
of 2024''.

SEC. 2. TREATMENT OF NATURAL BACKGROUND LEVELS AND ACTIVITY.

    (a) Treatment of Natural Background Levels.--Section 107(d) of the 
Clean Air Act (42 U.S.C. 7407(d)) is amended by adding at the end the 
following:
            ``(8) Treatment of naturally occurring events, wildfires, 
        and resilience actions.--In determining whether an area meets 
        national primary or secondary ambient air quality standards for 
        a pollutant under this subsection, the Administrator shall not 
        take into consideration any emissions of the pollutant that 
        result from--
                    ``(A) prescribed fires or wildfires on public or 
                private land, regardless of the cause of those fires;
                    ``(B) actions determined by the Governor to 
                increase resilience to natural disasters;
                    ``(C) natural disasters; or
                    ``(D) naturally occurring events that cause an 
                increase in the pollutant over the expected naturally 
                occurring levels in a given year.''.
    (b) Existing Compliance of Previous Standards.--Section 109 of the 
Clean Air Act (42 U.S.C. 7409) is amended by adding at the end the 
following:
    ``(e) Revisions Related to Naturally Occurring Background Levels.--
For national primary and secondary ambient air quality standards 
revised after the date of enactment of this subsection, if a revision 
of a standard by the Administrator would require a State to lower the 
emissions of a criteria pollutant in an area of that State below a 
level consistent with levels observed naturally in that area, as 
determined by the State, in an average year, the State shall not be 
required to lower the levels of that criteria pollutant below locally 
uncontrollable levels, including interstate, international, and local 
mobile emissions in areas that have implemented a basic vehicle 
emission inspection and maintenance program and clean-fuel vehicle 
program to comply with the requirements of section 182.
    ``(f) Existing Compliance.--For national primary and secondary 
ambient air quality standards revised after the date of enactment of 
this subsection, the Administrator shall take into consideration--
            ``(1) existing rates of compliance with previous national 
        primary and secondary ambient air quality standards;
            ``(2) technological feasibility of complying with the 
        proposed national primary or secondary ambient air quality 
        standard revision; and
            ``(3) the costs of complying with the proposed national 
        primary or secondary ambient air quality standard revision.''.
    (c) Treatment of Mobile Sources.--Section 110(a) of the Clean Air 
Act (42 U.S.C. 7410(a)) is amended by adding at the end the following:
            ``(7) Treatment of mobile sources.--In developing or 
        revising a State implementation plan under this section, the 
        Governor of a State may--
                    ``(A) make a determination as to the quantity of a 
                criteria pollutant that is created as a result of 
                mobile sources traversing any area designated as a 
                nonattainment area as a part of multi-region or 
                interstate transport; and
                    ``(B) in addition to mitigation methods developed 
                for an area designated as a nonattainment area for 
                which a determination was made under subparagraph (A), 
                develop methods for new major sources in the 
                nonattainment area to mitigate or offset the quantity 
                of mobile source pollution in the nonattainment area 
                determined under subparagraph (A) through the reduction 
                of mobile source pollution outside of that 
                nonattainment area.
            ``(8) Treatment of international emissions.--
                    ``(A) In general.--Not later than 2 years after the 
                date of enactment of this paragraph, the Administrator, 
                in consultation with the States, shall submit to 
                Congress a report that describes--
                            ``(i) the extent to which foreign sources 
                        of air pollution, including emissions from 
                        sources located outside of North America, 
                        impact--
                                    ``(I) the designation of areas (or 
                                portions of areas) as nonattainment, 
                                attainment, or unclassifiable under 
                                section 107(d); and
                                    ``(II) the attainment and 
                                maintenance of national ambient air 
                                quality standards;
                            ``(ii) the procedures and timelines of the 
                        Administrator for the disposition of petitions 
                        submitted under section 179B(b);
                            ``(iii) the total number of petitions 
                        received by the Administrator under section 
                        179B and, with respect to each petition--
                                    ``(I) the date on which the 
                                petition was initially submitted to the 
                                Administrator; and
                                    ``(II) the date of final 
                                disposition of the petition by the 
                                Administrator; and
                            ``(iv) whether the Administrator recommends 
                        any statutory changes to facilitate--
                                    ``(I) the more efficient review and 
                                disposition of petitions submitted 
                                under section 179B; and
                                    ``(II) the ability to discount the 
                                emissions of foreign sources in 
                                calculating the emissions levels and 
                                attainment of an area.
                    ``(B) Rulemaking required.--Not later than 3 years 
                after the date of enactment of this paragraph, the 
                Administrator, in consultation with the States, shall 
                complete a rulemaking that details any additional 
                flexibility that is to be provided to Governors of 
                States in the creation of State implementation plans 
                under this section with respect to the facilitation of 
                the ability described in subparagraph (A)(iv)(II).''.

SEC. 3. REVIEW AND REVISION CRITERIA FOR APPLICABLE STANDARDS.

    Section 109(d) of the Clean Air Act (42 U.S.C. 7409(d)) is amended 
by adding at the end the following:
            ``(3)(A) Notwithstanding paragraph (1), the Administrator 
        may not issue new standards relating to a criteria pollutant if 
        more than 15 percent of total air quality control regions that 
        were in nonattainment for that criteria pollutant as a result 
        of a previous revision of standards still remain in 
        nonattainment.
            ``(B) If fewer than 15 percent of the total number of air 
        quality control regions initially in nonattainment for a 
        criteria pollutant remain in nonattainment for that criteria 
        pollutant, the Administrator may issue new standards relating 
        to that criteria pollutant.''.

SEC. 4. RECLASSIFICATION OF MAJOR SOURCES AS AREA SOURCES.

    Section 112 of the Clean Air Act (42 U.S.C. 7412) is amended by 
adding at the end the following:
    ``(t) Reclassification of Major Sources as Area Sources.--
            ``(1) In general.--At any time that a stationary source 
        demonstrates to the Administrator that the actual or potential 
        emissions of hazardous air pollutants of a major source fall 
        below the standards described in subsection (a)(1) for a period 
        of 6 consecutive months, the Administrator shall reclassify the 
        major source as an area source under this section.
            ``(2) Requirements.--Beginning on the date of a 
        reclassification of a major source as an area source under 
        paragraph (1)--
                    ``(A) any requirements previously applicable to the 
                reclassified source under a major source standard under 
                this section shall no longer apply to that reclassified 
                source;
                    ``(B) the requirements of any applicable area 
                source standard under this section shall apply to that 
                reclassified source; and
                    ``(C) the owner or operator of the reclassified 
                source shall annually supply monitoring data of the 
                reclassified source to reconfirm the 
                reclassification.''.

SEC. 5. STANDARDS OF PERFORMANCE FOR NEW STATIONARY SOURCES.

    (a) In General.--Section 111 of the Clean Air Act (42 U.S.C. 7411) 
is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (B), in the first 
                        sentence, by inserting ``and subject to 
                        subparagraph (C)'' after ``subparagraph (A)''; 
                        and
                            (ii) by adding at the end the following:
                    ``(C) Limitation.--The Administrator may not 
                establish a new Federal standard of performance for a 
                new source until such time as the technology proposed 
                to serve as the best system of emission reduction under 
                the proposed new standard of performance--
                            ``(i) represents not less than 5 percent of 
                        the deployed systems already in use at the time 
                        the new standard of performance is proposed; 
                        and
                            ``(ii) has been demonstrated to fully 
                        achieve the emission standards of the proposed 
                        standard of performance.''; and
                    (B) in paragraph (6), by striking ``subsection 
                (a)(1)(A)(i) and (ii)'' and inserting ``subsection 
                (a)(1)'';
            (2) in subsection (d), by adding at the end the following:
            ``(3) Limitation of authority.--In prescribing regulations 
        under paragraph (1) and otherwise carrying out this subsection, 
        the Administrator may not direct a State--
                    ``(A) to establish standards of performance for any 
                air pollutants at a location that is not the location 
                of an existing source; or
                    ``(B) to meet any specific substantive emissions 
                criteria established by the Administrator other than 
                for a criteria air pollutant.''; and
            (3) by adding at the end the following:
    ``(k) Treatment of Modifications.--
            ``(1) In general.--For purposes of this section but subject 
        to paragraphs (2) and (3), a modification shall be considered 
        to be a new source only if--
                    ``(A) the modification expands the capacity or 
                production capability of the source; and
                    ``(B) the maximum hourly emission rate of an air 
                pollutant that is achievable by such source after the 
                change is higher than the maximum hourly emission rate 
                of such air pollutant that was achievable by such 
                source during any hour in the 10-year period 
                immediately preceding the change.
            ``(2) Exceptions.--If a modification expands the capacity 
        or production capability of a source, the modification shall 
        not be considered to be a new source for purposes of this 
        section if the modification is designed--
                    ``(A) to reduce any air pollutant emitted by the 
                source per unit of production;
                    ``(B) to reduce any greenhouse gas emitted by the 
                source per unit of production; or
                    ``(C) to enhance or restore the safety or 
                reliability of operations at the source.
            ``(3) Application of exceptions.--A modification that meets 
        an exception described in paragraph (2) shall not be considered 
        to be a modification for purposes of--
                    ``(A) the term `construction' (as defined in 
                section 169(2)) or any provision that uses that term; 
                or
                    ``(B) the term `modification' (as defined in 
                section 171) or any provision that uses that term.
    ``(l) Treatment of Offsets.--A proposed new source shall be exempt 
from the requirements of a proposed new source in an area designated as 
in nonattainment if the proposed new source emits not more than 0.5 
percent of the periodic emissions inventory of the criteria pollutant 
for the area within which the proposed new source will be located.''.
    (b) Rule of Construction.--The amendments made by subsection (a) 
shall not treat any change as a modification for purposes of the Clean 
Air Act (42 U.S.C. 7401 et seq.) if such change would not have been so 
treated as of the day before the date of enactment of this Act.

SEC. 6. TREATMENT OF PENDING PERMITS.

    (a) Preconstruction Requirements.--Section 165(b) of the Clean Air 
Act (42 U.S.C. 7475(b)) is amended--
            (1) by striking ``(b) The demonstration'' and inserting the 
        following:
    ``(b) Exceptions.--
            ``(1) Maximum allowable increases.--The demonstration''; 
        and
            (2) by adding at the end the following:
            ``(2) Pending draft permits.--The requirements of this 
        section shall not apply to a new, expanded, or modified major 
        emitting facility if, on the date on which a new national 
        ambient air quality standard or maximum allowable increase is 
        promulgated, the developer of a proposed major emitting 
        facility has received a draft permit from the applicable 
        permitting authority that demonstrates compliance with the 
        applicable standard or maximum allowable increase in effect 
        before the promulgation of the new national ambient air quality 
        or maximum allowable increase.''.
    (b) Permit Requirements.--Section 173 of the Clean Air Act (42 
U.S.C. 7503) is amended--
            (1) in subsection (a), in the matter preceding paragraph 
        (1), by striking ``The permit program required by section 
        172(b)(6)'' and inserting ``Except as provided in subsection 
        (f), the permit program required by section 172(c)(5)''; and
            (2) by adding at the end the following:
    ``(f) Pending Draft Permits.--
            ``(1) In general.--The requirements of this section shall 
        not apply to a new or modified major source if, on the date on 
        which a nonattainment area is first designated as in 
        nonattainment with respect to a pollutant or on the date on 
        which an area is reclassified, by operation of law or by 
        another method, to a higher classification of nonattainment--
                    ``(A) the major source has received a draft permit 
                from the applicable permitting authority that 
                demonstrates compliance with the standards in effect on 
                the day before that date; and
                    ``(B) the final permit is ultimately issued to the 
                new or modified major source under the standards for 
                which the draft permit was considered.
            ``(2) Applicability.--Any subsequent modification to a 
        major source described in paragraph (1) that requires a new 
        permit and is made after the applicable date described in that 
        paragraph shall be subject to the standards applicable at the 
        time of the request for the new permit.''.
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