[Congressional Record Volume 143, Number 111 (Thursday, July 31, 1997)]
[Senate]
[Pages S8547-S8550]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. MOYNIHAN (for himself and Mr. D'Amato):
  S. 1097. A bill to reduce acid deposition under the Clean Air Act, 
and for other purposes; to the Committee on Environment and Public 
Works.


                THE ACID DEPOSITION CONTROL ACT OF 1997.

  Mr. MOYNIHAN. Mr. President, I rise today to introduce the Acid 
Deposition Control Act of 1997, a bill to combat acid rain and help 
restore health to the Nation's sensitive ecosystems--such as the 
Adirondack Park in my home State of New York. My friend and colleague, 
Senator D'Amato is cosponsor of this measure.
  Mr. President, in the 1960's, fishermen in the Adirondacks began to 
complain about more than the big ones that got away. Fish, once 
abundant, were not simply becoming harder to catch. They had 
disappeared. Initially, pollution seemed an unlikely cause. The lakes 
lie in a park protected by the New York State Constitution from most 
disturbances by human activities. Most of the lakes are virtually 
inaccessible, except to fishermen--and the winds that blow in from 
industrial pockets across the Midwest.
  Before long, pioneering scientists such as Cornell University's 
Eugene Likens and Carl Schofield and Syracuse University's Charles 
Driscoll established a link between increased deposition of acidic 
compounds in rainfall and the absence or deformity of fish in lakes 
with clear water and low pH.
  This was precisely the phenomenon first documented by Robert Angus 
Smith in Manchester, England, in 1852. More recently, acid rain had 
been of concern in Scandinavia. Acids lofted into the atmosphere from 
tall smokestacks in the industrial basin of the Ruhr River, falling on 
watersheds that were, in many places, little more than bare rock. 
Closer to the source, acid rain was blamed for Waldsterben, the death 
of Germany's prized Black Forest.
  We have learned a great deal since then. In June 1980, Congress 
passed the Energy Security Act, Public Law 96-264. Title VII consisted 
of a bill I introduced in 1979, the Acid Precipitation Act of 1980. It 
established the National Acid Precipitation Assessment Program 
[NAPAP]--an interagency research program to foster the development of 
science-based Federal policy regarding acid rain. This program resulted 
in the establishment of long-term acid deposition monitoring programs, 
a network of permanent forest plots and lake sampling regimes, over 
1,500 peer reviewed publications, and perhaps more important the 
issuance of 71 doctoral degrees in acid deposition research during the 
1980's compared to only 2 in the decade before.
  By the end of this massive study, scientists worldwide gathered in 
South Carolina to discuss what they had learned. They learned that at 
least 800 lakes and 2,200 streams in the eastern United States had been 
made acidic by acid rain; they predicted that an additional 10 percent 
would become acidic over the next decade without additional 
legislation. And they confirmed--as had been expected--that sulfur 
dioxide emissions were found to be a significant factor in acidifying 
ecosystems. Sulfur dioxide had contributed to forest decline in high 
elevation areas, corrosion of stone and metal structures, and reduced 
visibility.
  In 1990, Congress enacted acid rain controls to reduce sulfur dioxide 
emissions by 10 million tons below 1985 levels, utilizing a unique, 
market-based approach to ensure the most cost-effective pollution 
reduction possible. At the time, the measure was expected to have some 
noticeable--but not overwhelming--beneficial effects.
  We were right. Visibility has increased. Acidification of lake waters 
and deterioration of materials has been reduced. The incidence of 
respiratory disease has decreased. The market-based emissions trading 
approach has proved a tremendous success, fostering reductions nearly 
40 percent beyond that which the act required, at costs amounting to a 
mere fraction of industry and government predictions. Equally 
important, our knowledge increased.
  In recent years, scientists have identified another important 
precursor of acid rain: nitrogen oxides. Studies on the combined effect 
of sulfur dioxide and nitrogen oxide strongly suggest that the Clean 
Air Act will not be adequate to prevent long-term deterioration of 
national treasures such as the Adirondack Mountains and the Chesapeake 
Bay. According to a 1995 Environmental Protection Agency [EPA] study, 
even with the reductions required by the Clean Air Act, up to 45 
percent of the lakes in the Adirondacks will become too acidic to 
support most aquatic life by the year 2040. Lakes too acidic to support 
life. Now there is a powerful image.
  The bill I introduce today requires an additional 50-percent 
reduction of sulfur dioxide and a 75-percent reduction in the level of 
nitrogen oxides emitted from electric utilities. This legislation 
blends the best judgment of top scientists with the successful, market-
based approach of the existing program.
  The legislation calls for a nitrogen oxide cap and trade program 
similar to the sulfur dioxide program presently administered by EPA's 
Acid Rain Division. Under the program, EPA officials would divide a 
fixed--capped--number of nitrogen oxide emission allowances among the 
48 contiguous States each year, basing each State's share of allowances 
on the State's share of the power generated within the 48 States.
  Each State, in turn, would divide the allowances among the utilities 
within the State, in whatever manner the State sees fit. Each allowance 
represents a limited right to emit 1 ton of NOX pollution. 
Each utility must conduct an accounting procedure to ensure that they 
hold enough allowances to cover their emissions tonnage. A utility with 
more allowances than emissions may sell their additional allowances or 
save them for use in a future year. Likewise, a utility with fewer 
allowances than emissions would purchase excess allowances from another 
source.
  If for any reason a State does not wish to administer the allocation 
of allowances to its utilities, the EPA Administrator will distribute 
the allowances automatically, giving each utility a share of the 
State's allowances equal to that utility's share of the State's power 
generation.
  In addition to contributing to acid deposition, NOX 
pollution contributes to ozone pollution, a respiratory and pulmonary 
irritant which can cause significant adverse health effects. Because 
heat and sunlight are necessary components in the creation of ozone 
pollution, ozone is most prevalent in warm summer months. Therefore, in 
an effort to reduce ozone pollution, the legislation would take 
additional measures to reduce summertime NOX emissions. 
During the months of May, June, July, August, and September, an 
electric utility would be forced to surrender two allowances per ton of 
NOX emitted.
  The NOX trading program would commence operation on 
January 1, 2000, beginning with an annual cap of 5.4 million allowances 
and cutting back to 3.0 million allowances beginning in 2003. EPA 
modeling suggests that, due to

[[Page S8548]]

the two-for-one ozone season emissions provision, the actual emissions 
will likely drop to approximately 2.3 million tons per year after 
2003--a reduction of approximately 70 percent from 1995 levels.
  Mr. President, there were days when dark plumes of smoke coming out 
of factory smokestacks were signs of prosperity. There was nothing Jim 
Farley liked to do better than put up a new Post Office and hire an 
artist to paint on its walls prosperity returning. Black columns of 
smoke reaching up to the sky--strong colors for what we hoped would be 
a strong economy.
  Lord Kelvin used to point out that one can't solve a problem that one 
cannot measure. We have spent decades measuring, and now it is time to 
update our policy response in order to solve the problem. It is time to 
adjust to the consequences of what we have learned. Mr. President, I 
urge my colleagues to support the Acid Deposition Control Act of 1997.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1097

       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 ``Acid Deposition Control 
     Act''.

     SEC. 2. FINDINGS AND PURPOSES.

       (a) Findings.--Congress finds that--
       (1) reductions of atmospheric nitrogen oxide and sulfur 
     dioxide from utility plants, in addition to the reductions 
     required under the Clean Air Act (42 U.S.C. 7401 et seq.), 
     are needed to reduce acid deposition and its serious adverse 
     effects on public health, natural resources, building 
     structures, sensitive ecosystems, and visibility;
       (2) nitrogen oxide and sulfur dioxide contribute to the 
     development of fine particulates, suspected of causing human 
     mortality and morbidity to a significant extent;
       (3) regional nitrogen oxide reductions of 50 percent in the 
     Eastern United States, in addition to the reductions required 
     under the Clean Air Act, may be necessary to protect 
     sensitive watersheds from the effects of nitrogen deposition;
       (4) without reductions in nitrogen oxide and sulfur 
     dioxide, the number of acidic lakes in the Adirondacks in the 
     State of New York is expected to increase by up to 40 percent 
     by 2040; and
       (5) nitrogen oxide is highly mobile and can lead to ozone 
     formation hundreds of miles from the emitting source.
       (b) Purposes.--The purposes of this Act are--
       (1) to recognize the current scientific understanding that 
     emissions of nitrogen oxide and sulfur dioxide, and the acid 
     deposition resulting from emissions of nitrogen oxide and 
     sulfur dioxide, present a substantial human health and 
     environmental risk;
       (2) to require reductions in nitrogen oxide and sulfur 
     dioxide emissions;
       (3) to support the efforts of the Ozone Transport 
     Assessment Group to reduce ozone pollution;
       (4) to reduce utility emissions of nitrogen oxide by 70 
     percent from 1990 levels; and
       (5) to reduce utility emissions of sulfur dioxide by 50 
     percent after the implementation of phase II sulfur dioxide 
     requirements under section 405 of the Clean Air Act (42 
     U.S.C. 7651d).

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of the Environmental Protection Agency.
       (2) Affected facility.--The term ``affected facility'' 
     means a facility with 1 or more combustion units that serve 
     at least 1 electricity generator with a capacity equal to or 
     greater than 25 megawatts.
       (3) NOx allowance.--The term ``NOx 
     allowance'' means a limited authorization to emit, in 
     accordance with this Act--
       (A) 1 ton of nitrogen oxide during each of the months of 
     October, November, December, January, February, March, and 
     April of any year; and
       (B) \1/2\ ton of nitrogen oxide during each of the months 
     of May, June, July, August, and September of any year.
       (4) MMBTU.--The term ``mmBtu'' means 1 million British 
     thermal units.
       (5) Program.--The term ``Program'' means the Nitrogen Oxide 
     Allowance Program established under section 4.
       (6) State.--The term ``State'' means the 48 contiguous 
     States and the District of Columbia.

     SEC. 4. NITROGEN OXIDE ALLOWANCE PROGRAM.

       (a) In General.--
       (1) Establishment.--Not later than 18 months after the date 
     of enactment of this Act, the Administrator shall establish a 
     program to be known as the ``Nitrogen Oxide Allowance 
     Program''.
       (2) Scope.--The Program shall be conducted in the 48 
     contiguous States and the District of Columbia.
       (3) NOx allowances.--The Administrator shall 
     allocate under paragraph (4)--
       (A) for each of calendar years 2000 through 2002, 5,400,000 
     NOx allowances; and
       (B) for calendar year 2003 and each calendar year 
     thereafter, 3,000,000 NOx allowances.
       (4) Allocation.--
       (A) Definition of total electric power.--For purposes of 
     this paragraph, the term ``total electric power'' means all 
     electric power generated by utility and nonutility generators 
     for distribution, including electricity generated from solar 
     wind, hydro power, nuclear power, and the combustion of 
     fossil fuel.
       (B) Allocation of allowances.--The Administrator shall 
     allocate annual NOx allowances to each of the 
     States in proportion to the State's share of the total 
     electric power generated in the 48 contiguous States and the 
     District of Columbia.
       (C) Publication.--The Administrator shall publish in the 
     Federal Register a list of each State's NOx 
     allowance allocation--
       (i) by December 1, 1998, for calendar years 2000 and 2002;
       (ii) by December 1, 2000, for calendar years 2003 through 
     2010; and
       (iii) by December 1 of each calendar year after 2000, for 
     the calendar year 5 years previous.
       (5) Intrastate distribution.--
       (A) In general.--A State may submit a report to the 
     Administrator detailing the distribution of NOx 
     allowances of the State to affected facilities in the State--
       (i) not later than September 30, 1999, for calendar years 
     2000 through 2002;
       (ii) not later than September 30, 2001, for calendar years 
     2003 through 2010; and
       (iii) not later than September 30 of each calendar year 
     after 2011, for the calendar year 5 years previous.
       (B) Action by the administrator.--If a State submits a 
     report under subparagraph (A) not later than September 30 of 
     the calendar year specified in subparagraph (A), the 
     Administrator shall distribute the NOx allowances 
     to affected facilities in the State as detailed in the 
     report.
       (C) Late submission of report.--A report submitted by a 
     State after September 30 of the specified year shall have no 
     force or effect.
       (D) Distribution in absence of a report.--
       (i) In general.--Subject to subsection (e), if a State does 
     not submit a report under subparagraph (A) not later than 
     September 30 of the calendar year specified in subparagraph 
     (A), the Administrator shall, not later than November 30 of 
     that calendar year, distribute the NOx allowances 
     for the calendar years specified in subparagraph (A) to each 
     affected facility in the State in proportion to the affected 
     facility's share of the total net electric power generated in 
     the State.
       (ii) Determination of facility's share.--In determining an 
     affected facility's share of total net electric power 
     generated in a State, the Administrator shall consider the 
     net electric power generated by the facility and the State to 
     be--

       (I) for calendar years 2000 through 2002, the average 
     annual amount of net electric power generated, by the 
     facility and the State, respectively, in calendar years 1995 
     through 1997;
       (II) for calendar years 2003 through 2010, the average 
     annual amount of net electric power generated, by the 
     facility and the State, respectively, in calendar years 1997 
     through 1999; and
       (III) for calendar year 2011 and each calendar year 
     thereafter, the amount of net electric power generated, by 
     the facility and the State, respectively, in the calendar 
     year 5 years previous to the year for which the determination 
     is made.

       (E) Judicial review.--A distribution of NOx 
     allowances by the Administrator under subparagraph (D) shall 
     not be subject to judicial review.
       (b) NOx Allowance Transfer System.--
       (1) In general.--Not later than 18 months after the date of 
     enactment of this Act, the Administrator shall promulgate 
     NOx allowance system regulations under which a 
     NOx allowance allocated under this Act may be 
     transferred among affected facilities and any other person.
       (2) Establishment.--The regulations shall establish the 
     NOx allowance system under this section, including 
     requirements for the allocation, transfer, and use of 
     NOx allowances under this Act.
       (3) Use of nox allowances.--The regulations 
     shall--
       (A) prohibit the use (but not the transfer in accordance 
     with paragraph (5)) of any NOx allowance before 
     the calendar year for which the NOx allowance is 
     allocated; and
       (B) provide that the unused NOx allowances shall 
     be carried forward and added to NOx allowances 
     allocated for subsequent years.
       (4) Certification of transfer.--A transfer of a 
     NOx allowance shall not be effective until a 
     written certification of the transfer, signed by a 
     responsible official of the person making the transfer, is 
     received and recorded by the Administrator.
       (c) NOx Allowance Tracking System.--Not later 
     than 18 months after the date of enactment of this Act, the 
     Administrator shall promulgate regulations for issuing, 
     recording, and tracking the use and transfer of 
     NOx allowances that shall specify all necessary 
     procedures and requirements for an orderly and competitive 
     functioning of the NOx allowance system.
       (d) Permit Requirements.--A NOx allowance 
     allocation or transfer shall, on recordation by the 
     Administrator, be considered to

[[Page S8549]]

     be a part of each affected facility's operating permit 
     requirements, without the requirement for any further permit 
     review and revision.
       (e) New Source Reserve.--
       (1) In general.--For a State for which the Administrator 
     distributes NOx allowances under subsection 
     (a)(5)(D), the Administrator shall place 10 percent of the 
     total annual NOx allowances of the State in a new 
     source reserve to be distributed by the Administrator--
       (A) for calendar years 2000 through 2003, to sources that 
     commence operation after 1995;
       (B) for calendar years 2004 through 2009, to sources that 
     commence operation after 1997; and
       (C) for calendar year 2010 and each calendar year 
     thereafter, to sources that commence operation after the 
     calendar year that is 5 years previous to the year for which 
     the distribution is made.
       (2) Share.--For a State for which the Administrator 
     distributes NOx allowances under subsection 
     (a)(5)(D), the Administrator shall distribute to each new 
     source a number of NOx allowances sufficient to 
     allow emissions by the source at a rate equal to the lesser 
     of the new source performance standard or the permitted level 
     for the full nameplate capacity of the source, adjusted pro 
     rata for the number of months of the year during which the 
     source operates.
       (3) Unused nox allowances.--
       (A) In general.--During the period of calendar years 2000 
     through 2005, the Administrator shall conduct auctions at 
     which a NOx allowance remaining in the new source 
     reserve that has not been distributed under paragraph (2) 
     shall be offered for sale.
       (B) Open auctions.--An auction under subparagraph (A) shall 
     be open to any person.
       (C) Conduct of auction.--
       (i) Method of bidding.--A person wishing to bid for a 
     NOx allowance at an auction under subparagraph (A) 
     shall submit (by a date set by the Administrator) to the 
     Administrator (on a sealed bid schedule provided by the 
     Administrator) an offer to purchase a specified number of 
     NOx allowances at a specified price.
       (ii) Sale based on bid price.--A NOx allowance 
     auctioned under subparagraph (A) shall be sold on the basis 
     of bid price, starting with the highest priced bid and 
     continuing until all NOx allowances for sale at 
     the auction have been sold.
       (iii) No minimum price.--A minimum price shall not be set 
     for the purchase of a NOx allowance auctioned 
     under subparagraph (A).
       (iv) Regulations.--The Administrator, in consultation with 
     the Secretary of the Treasury, shall promulgate regulations 
     to carry out this paragraph.
       (D) Use of nox allowances.--A NOx 
     allowance purchased at an auction under subparagraph (A) may 
     be used for any purpose and at any time after the auction 
     that is permitted for use of a NOx allowance under 
     this Act.
       (E) Proceeds of auction.--The proceeds from an auction 
     under this paragraph shall be distributed to the owner of an 
     affected source in proportion to the number of allowances 
     that the owner would have received but for this subsection.
       (f) Nature of NOx Allowances.--
       (1) Not a property right.--A NOx allowance shall 
     not be considered to be a property right.
       (2) Limitation of nox allowances.--
     Notwithstanding any other provision of law, the Administrator 
     may terminate or limit a NOx allowance.
       (g) Prohibitions.--
       (1) In general.--After January 1, 2000, it shall be 
     unlawful--
       (i) for the owner or operator of an affected facility to 
     operate the affected facility in such a manner that the 
     affected facility emits nitrogen oxides in excess of the 
     amount permitted by the quantity of NOx allowances 
     held by the designated representative of the affected 
     facility; or
       (ii) for any person to hold, use, or transfer a 
     NOx allowance allocated under this Act, except as 
     provided under this Act.
       (2) Other emission limitations.--Section 407 of the Clean 
     Air Act (42 U.S.C. 7651f) is repealed.
       (3) Time of use.--A NOx allowance may not be 
     used before the calendar year for which the NOx 
     allowance is allocated.
       (4) Permitting, monitoring, and enforcement.--Nothing in 
     this section affects--
       (A) the permitting, monitoring, and enforcement obligations 
     of the Administrator under the Clean Air Act (42 U.S.C. 7401 
     et seq.); or
       (B) the requirements and liabilities of an affected 
     facility under the Clean Air Act (42 U.S.C. 7401 et seq.).
       (h) Savings Provisions.--Nothing in this section--
       (1) affects the application of, or compliance with, the 
     Clean Air Act (42 U.S.C. 7401 et seq.) for an affected 
     facility, including the provisions related to applicable 
     national ambient air quality standards and State 
     implementation plans;
       (2) requires a change in, affects, or limits any State law 
     regulating electric utility rates or charges, including 
     prudency review under State law;
       (3) affects the application of the Federal Power Act (16 
     U.S.C. 791a et seq.) or the authority of the Federal Energy 
     Regulatory Commission under that Act; or
       (4) interferes with or impairs any program for competitive 
     bidding for power supply in a State in which the Program is 
     established.

     SEC. 5. INDUSTRIAL SOURCE MONITORING.

       Section 412(a) of the Clean Air Act (42 U.S.C. 7651k(a)) is 
     amended in the first sentence by inserting ``, or of any 
     industrial facility with a capacity of 100 or more mmBtu's 
     per hour,'' after ``The owner and operator of any source 
     subject to this title''.

     SEC. 6. EXCESS EMISSIONS PENALTY.

       (a) In General.--
       (1) Liability.--The owner or operator of an affected 
     facility that emits nitrogen oxides in any calendar year in 
     excess of the NOx allowances the owner or operator 
     holds for use for the facility for that year shall be liable 
     for the payment of an excess emissions penalty.
       (2) Calculation.--The excess emissions penalty shall be 
     calculated by multiplying $6,000 by the quantity that is 
     equal to--
       (A) the quantity of NOx allowances that would 
     authorize the nitrogen oxides emitted by the facility for the 
     calendar year; minus
       (B) the quantity of NOx allowances that the 
     owner or operator holds for use for the facility for that 
     year.
       (3) Overlapping penalties.--A penalty under this section 
     shall not diminish the liability of the owner or operator of 
     an affected facility for any fine, penalty, or assessment 
     against the owner or operator for the same violation under 
     any other provision of law.
       (b) Excess Emissions Offset.--
       (1) In general.--The owner or operator of an affected 
     facility that emits nitrogen oxide during a calendar year in 
     excess of the NOx allowances held for the facility 
     for the calendar year shall offset in the following calendar 
     year a quantity of NOx allowances equal to the 
     number of NOx allowances that would authorize the 
     excess nitrogen oxides emitted.
       (2) Proposed plan.--Not later than 60 days after the end of 
     the year in which excess emissions occur, the owner or 
     operator of an affected facility shall submit to the 
     Administrator and the State in which the affected facility is 
     located a proposed plan to achieve the offset required under 
     paragraph (1).
       (3) Condition of permit.--On approval of the proposed plan 
     by the Administrator, as submitted, modified, or conditioned 
     by the Administrator, the plan shall be considered a 
     condition of the operating permit for the affected facility 
     without further review or revision of the permit.
       (c) Penalty Adjustment.--The Administrator shall annually 
     adjust the penalty specified in subsection (a) to reflect 
     changes in the Consumer Price Index for all urban consumers 
     published by the Bureau of Labor Statistics.

     SEC. 7. SULFUR DIOXIDE ALLOWANCE PROGRAM REVISIONS.

       Section 402(3) of the Clean Air Act (as added by section 
     401 of Public Law 101-549 (104 Stat. 2584)) (42 U.S.C. 
     7651a(3)) is amended by inserting before the period at the 
     end the following: ``for allowances allocated for calendar 
     years 1995 through 2002, and \1/2\ ton of sulfur dioxide for 
     allowances allocated for calendar year 2003 and each calendar 
     year thereafter.''.

     SEC. 8. REGIONAL ECOSYSTEMS.

       (a) Report.--
       (1) In general.--Not later than December 31, 2002, the 
     Administrator shall submit to Congress a report identifying 
     objectives for scientifically credible environmental 
     indicators, as determined by the Administrator, that are 
     sufficient to protect sensitive ecosystems of the Adirondack 
     Mountains, Mid-Appalachian Mountains, and Southern Blue Ridge 
     Mountains and water bodies of the Great Lakes, Lake 
     Champlain, Long Island Sound, and the Chesapeake Bay.
       (2) Acid neutralizing capacity.--The report under paragraph 
     (1) shall--
       (A) include acid neutralizing capacity as an indicator; and
       (B) identify as an objective under paragraph (1) the 
     objective to increase the proportion of water bodies in 
     sensitive receptor areas with an acid neutralizing capacity 
     greater than zero from the proportion identified in surveys 
     begun in 1984.
       (3) Updated report.--Not later than December 31, 2006, the 
     Administrator shall submit to Congress a report updating the 
     report under paragraph (1) and assessing the status and 
     trends of various environmental indicators for the regional 
     ecosystems referred to in paragraph (1).
       (4) Reports under the national acid precipitation 
     assessment program.--The reports under this subsection shall 
     satisfy the report requirements set forth in section 
     103(j)(3)(E) of the Clean Air Act (42 U.S.C. 7403(j)(3)(E)) 
     for the years 2002 and 2006.
       (b) Regulations.--
       (1) Determination.--Not later than December 31, 2006, the 
     Administrator shall determine whether emissions reductions 
     under section 4 are sufficient to ensure achievement of the 
     objectives identified in subsection (a)(1).
       (2) Promulgation.--If the Administrator determines under 
     paragraph (1) that emissions reductions under section 4 are 
     not sufficient to ensure achievement of the objectives 
     identified in subsection (a)(1), the Administrator shall 
     promulgate, not later than 2 years after making the finding, 
     such regulations, including modification of nitrogen oxide 
     and sulfur dioxide allowance allocations or any such measure, 
     as the Administrator determines are necessary to protect the 
     sensitive ecosystems described in subsection (a)(1).

     SEC. 9. GENERAL COMPLIANCE WITH OTHER PROVISIONS.

       Except as expressly provided in this Act, compliance with 
     this Act shall not exempt or

[[Page S8550]]

     exclude the owner or operator of an affected facility from 
     compliance with any other law.

     SEC. 10. MERCURY EMISSION STUDY AND CONTROL.

       (a) Study and Report.--The Administrator shall--
       (1) study the practicality of monitoring mercury emissions 
     from all combustion units that have a capacity equal to or 
     greater than 250 mmBtu's per hour; and
       (2) not later than 2 years after the date of enactment of 
     this Act, submit to Congress a report on the results of the 
     study.
       (b) Regulations Concerning Monitoring.--Not later than 1 
     year after the date of submission of the report under 
     subsection (a), the Administrator shall promulgate 
     regulations requiring the reporting of mercury emissions from 
     units that have a capacity equal to or greater than 250 
     mmBtu's per hour.
       (c) Emission Controls.--
       (1) In general.--Not later than 1 year after the 
     commencement of monitoring activities under subsection (b), 
     the Administrator shall promulgate regulations controlling 
     electric utility and industrial source emissions of mercury.
       (2) Factors.--The regulations shall take into account 
     technological feasibility, cost, and the projected levels of 
     mercury emissions that will result from implementation of 
     this Act.

     SEC. 11. DEPOSITION RESEARCH BY THE ENVIRONMENTAL PROTECTION 
                   AGENCY.

       (a) In General.--The Administrator shall establish a 
     competitive grant program to fund research related to the 
     effects of nitrogen deposition on sensitive watersheds and 
     coastal estuaries in the Eastern United States.
       (b) Chemistry of Lakes and Streams.--Not later than 
     September 30, 1999, and September 30, 2006, the Administrator 
     shall submit to the Committee on Environment and Public Works 
     of the Senate and the Committee on Resources of the House of 
     Representatives a report on the health and chemistry of lakes 
     and streams of the Adirondacks that were subjects of the 
     report transmitted under section 404 of Public Law 101-549 
     (commonly known as the ``Clean Air Act Amendments of 1990'') 
     (104 Stat. 2632).
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated--
       (1) to carry out subsection (a), $1,000,000 for each of 
     fiscal years 1998 through 2003; and
       (2) to carry out subsection (b), $1,000,000 for each of 
     fiscal years 1998, 1999, 2005, and 2006.

  Mr. D'AMATO. Mr. President, I rise today to join my friend and 
distinguished colleague, Senator Moynihan, in introducing legislation 
that we believe will curb the devastating effects of acid rain in New 
York State and throughout the entire Nation. Our bill seeks to place 
controls on the emission of the pollutants that cause acid rain and 
acid deposition--Sulfur Dioxide (SO2) and Nitrogen Oxide 
(NOx)--beyond those levels enacted in the 1990 Clean Air 
Act. In this way, we will ensure that those entities that are primarily 
responsible for the pollution that affects down-wind States such as New 
York are held to the same strict accountability.
  New Yorkers know all too well that pollution transported from up-wind 
sources has had a devastating impact on the Adirondacks as well as 
other regions within the State. The prevalence of acid deposition has 
reached the point where the Environmental Protection Agency [EPA] 
estimates that without further controls of nitrogen oxides, the number 
of acidic lakes in the Adirondacks could increase to 43 percent by the 
year 2040. Such an increase will see approximately 1,300 lakes out of 
the 3,000 in the Adirondacks become chronically acidic. Clearly, we 
must take action to prevent this from becoming a reality.
  Under the 1990 Clean Air Act, a cap on SO2 emissions was 
enacted. It was designed to reduce the overall level of this pollutant 
by 50 percent by the year 2000. To provide an incentive to decrease 
emissions even more, a system of trading allowances for SO2 
was established. An ``allowance'' allows a utility to emit 1 ton of 
SO2 pollution. These trading allowances enable utilities 
that have reached their allowable emission caps for SO2 to 
buy another utility's excess capability. This ability to ``trade'' tons 
of SO2 has been popular with utilities and has actually 
brought significant reductions in the amount of SO2 emitted 
in a cost-effective manner. The legislation that we are introducing 
today builds on that success by instituting a NOx cap and 
trade program that we believe will have a positive impact on the 
environment.
  Under the bill, the Environmental Protection Agency [EPA] would be 
required to allocate a capped number of NOx emission 
allowances nationwide--excluding Alaska and Hawaii. The EPA would base 
each State's allotment on the percentage share of power each State 
generates within the 48 contiguous States. So, if a particular State 
generates 5 percent of the power in the Continental United States, then 
that State would be entitled to 5 percent of the total emissions pool.
  Once a State had received its emission allowances, the State would be 
able to divide those allowances within the State in any manner it 
chooses. Utilities would be required to ensure that they have enough 
tons at their disposal to cover their total emission tonnage. If a 
State had additional tons, they would be able to sell allowances or 
``bank'' them for use at a future time. A utility without enough 
allowances would have to buy them on the open market, an option 
currently in practice with SO2. Utilities that do not abide 
by these restrictions on capping and trading NOx allowances 
would be fined $6,000 per ton emitted over the established limit for 
that plant. States that are unwilling or unable to determine the 
allocation of allowances to utilities within their State would have 
that capability default to the EPA.
  The NOx trading program would go into effect in the year 
2000 with an annual cap of 5.4 million allowances nationwide decreasing 
to 3 million allowances in 2003. Currently, utilities emit 
approximately 6.5 million tons of nitrogen oxides (NOx).
  The bill would also create further protections against harmful 
pollution during the summer months when ozone levels are at their 
highest. When NOx combines with heat, sunlight and volatile 
organic compounds [VOC's], the end product is ozone. Thus, ideal 
conditions for high levels of ground-level ozone occur mainly in the 
summer months. To combat this, the legislation calls for utilities to 
give up two allowances for each ton of NOx emitted during 
the months of May, June, July, August and September instead of the one 
allowance per ton that would apply for the remaining 7 months of the 
year. This would effectively drop the total emission of NOx 
to 2.3 million tons after the year 2003 and would create approximately 
a 70 percent reduction in NOx emissions from the 1990 level.
  In addition, the bill calls for further reductions in SO2 
in the year 2003, when utilities will be required to use two allowances 
per ton of SO2 emitted instead of one. This would cut these 
emissions in half. The bill also requires the EPA to conduct a study on 
the effects that mercury, a toxic metal, may have on the environment 
and how to measure this mercury with an eye towards possible monitoring 
and control of mercury emissions in the future.
  Finally, the bill contains a provision for specific research on the 
effect of acid deposition on the sensitive ecosystems of the 
Adirondacks, the Southern Blue Ridge Mountains, the Mid-Appalachian 
Mountains and water bodies of the Great Lakes, Lake Champlain, Long 
Island Sound and the Chesapeake Bay. If proven by research that a 
particular region is still threatened, then the Administrator may take 
further steps to promote environmental recovery of that region.
  We in New York continue to see the effects that acid rain and acid 
deposition have on our environment. Lakes, streams and trees in the 
Adirondacks are still dying due to the continued emission and transport 
of these pollutants. Other states and other regions throughout our 
nation have similar problems. If we are to pass along a healthy 
environment to our children and grandchildren, we must be willing to 
enact the controls that will preserve that legacy. The legislation that 
Senator Moynihan and I have proposed is strong medicine, but it will 
enable us to sustain our heritage for generations to come.
                                 ______