[Congressional Record Volume 144, Number 147 (Thursday, October 15, 1998)]
[Senate]
[Pages S12648-S12654]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. LEAHY:
S. 2636. A bill to promote economically sound modernization of
electric power generation capacity in the United States, to establish
requirements to improve the combustion heat rate efficiency of fossil
fuel-fired electric utility generating units, to reduce emissions of
mercury, carbon dioxide, nitrogen oxides, and sulfur dioxide, to
require that all fossil fuel-fired electric utility generating units
operating in the United States meet new source review requirements, and
to promote alternative energy sources such as solar, wind, and biomass;
to the Committee on Finance.
Clean Power Plant and Modernization Act of 1998
Mr. LEAHY. Mr. President, as we approach the close of the 105th
Congress, it is time to take stock of our accomplishments, and reflect
on the work that remains. When the environmental record of this
Congress is tallied up, there won't be much to show. At best, we have
avoided a great roll-back of environmental protections. We can't claim
to have broken much new ground.
To her credit, Carol Browner and her staff at the Environmental
Protection Agency have tried to push ahead in a very difficult
political climate. Administrator Browner recently announced that EPA
was ordering 22 Eastern states to make sharp cuts in emissions of the
pollutants that result in summertime ozone pollution. A significant
portion of these pollutants come from coal-fired power plants. The
predictable howl from the utility companies and their lobbyists is
being heard on Capitol Hill. I applaud Administrator Browner and her
staff for their persistence on this important issue.
Even though this is a good step, it doesn't go far enough. Stronger,
more comprehensive action is needed to finally address the whole gamut
of air pollution problems that spew from power plant smoke stacks.
Taken collectively, fossil fuel-fired power plants constitute the
largest source of air pollution in the United States. It is clear by
now that the current Clean Air Act and its regulations are not up to
the job of addressing the local, regional and global public health and
environmental burdens imposed by the emissions from these plants.
Congress took a big step to control air pollution with the Clean Air
Act of 1970, and it did major rewrites of the Act in 1977 and 1990.
Even with all this legislation on the books, most fossil fuel-fired
power plants produce as much pollution as they did prior to 1970. The
average fossil fuel-fired generating unit in the United States came
into operation in 1964--six years before the 1970 Act. Seventy-seven
percent of the fossil fuel generating units in operation in the United
States began operation before the 1970 Clean Air Act was implemented,
and are thus not subject to the full force of its regulations.
At the very heart of the environmental problems posed by this
industry are the antiquated and inefficient combustion technologies
that are used. Nothing in the Clean Air Act, or in other energy related
statues, tackles this inefficiency. The average plant uses technology
devised in the 1950's or before, and has a combustion efficiency of
33%. Put another way, 67% of the energy available in the fuel is
wasted. When you get so little energy out of the fuel, you have to burn
a lot more fuel to produce a given quantity of electricity. The more
fuel you burn, the more pollution you get. Increasing efficiency is the
only way to reduce carbon dioxide emissions, and burning less fuel will
result in smaller amounts of all pollutants.
Burning all this fuel may be good for the bottom line of the
companies that produce the coal, oil, and natural gas, but it imposes
great environmental and health consequences on the rest of us. Many of
my colleagues came to the Senate after successful business careers. I
imagine that most would agree with me that any other business that was
this wasteful would not survive for long.
To produce the power that our economy needs, some level of emissions
is inevitable. But this inefficiency, coupled with the free ride on
emissions that the pre-1970 plants get, exacts an enormous
environmental cost. Consider the following power plant facts:
Every year, fossil fuel-fired power plants in the United States
produced a staggering 2 billion tons of carbon dioxide, the primary
``greenhouse gas,'' the equivalent weight of 24,655 Washington
Monuments.
Over 600 of these generating units produce over one million tons of
carbon dioxide per year--two produce more than 9 million tons per year.
On average, coal plants emit over 2,100 pounds of carbon dioxide for
every megawatt hour of electricity that is generated.
Coal-fired power plants emit at least 52 tons of mercury per year and
are the leading source of mercury pollution in the United States.
Power plants emit particulate and urban ozone pollution that impair
respiratory function in people with asthma, emphysema, and other
respiratory ailments.
Power plant emissions result in acid deposition, which damages lakes,
streams and rivers, and the plants and animals that depend on them for
survival.
Technology exists that can raise power plant efficiencies to 35% to
50% above current levels. The question is how to get utilities to
retire their inefficient processes and bring new, clean, and efficient
ones on line. We can see a better future, but we don't have a clear
path to get there.
Today, I am introducing the ``Clean Power Plant and Modernization Act
of 1998'' to help us get to the other side. My goals with this
legislation are to
[[Page S12649]]
chart a sensible and balanced course for the future that: protects
public health and the environment; protects consumers, workers, and the
economy; and provides electrical power producers with a clear set of
achievable performance expectations and financial incentives for
installing new, clean, and efficient electrical power generating
capacity that will meet our needs into the 21st Century.
This industry plays a central role in the U.S. economy and in our
daily lives. We expect that electrical service will be reliable,
predictable and affordable. We flip on the switch without giving a
second thought that the light will go on. My bill will not change that.
Major changes cannot be made over night. We know about inertia From
Sir Isaac Newton's First Law of Motion that ``any object in a state of
rest or uniform linear motion will remain in such a state unless acted
upon by an external force.'' The inertia in the utility industry to
continue business as usual is overwhelming. The old, inefficient,
pollution-prone power plants will continue to operate in perpetuity
because they are paid for, they burn the cheapest fuel, and they are
subject to less stringent environmental requirements.
My bill provides an ``external force'' in the form of financial and
regulatory incentives to prompt modernization that is beneficial for
the environment and the economy. It provides industry decision-makers
with a comprehensive and predictable set of requirements and incentives
to guide their long-term business planning.
For investor-owned utilities, the bill provides accelerated
depreciation tax incentives for plants that meet the efficiency goals.
Under current tax law, new generating capacity is depreciated over a 20
year period. Under my bill, new capacity that meets a 45% efficiency
level would be depreciated over a 15 year period, and new capacity that
meets a 50% efficiency level would be depreciated over a 10 year
period. Publicly owned utilities would be eligible for grants that have
the equivalent monetary value of the depreciation benefit received by a
similarly-situated investor-owned utility. This approach will spur
innovation, and will reward utilities that aggressively move to
increase their efficiency and reduce their emissions.
To pay for these incentives and to achieve this within the balanced
budget constraints, my bill establishes a fee that would be levied on
carbon dioxide emissions. The emission fees would also provide funds:
for worker retraining for individuals adversely affected by reduced
consumption of coal; community redevelopment funds; research and
development for renewable technologies such as wind, solar, and
biomass; development of a carbon sequestration strategy; and
implementing carbon sequestration projects including soil restoration,
tree planting, preservation of wetlands, and other ways of biologically
sequestering carbon dioxide.
I want to work cooperatively with the power companies on this
legislation, and I want to work with my colleagues from coal-producing
states to minimize the impact of reduced coal consumption on mine
workers and mining communities. I also want to work with my colleagues
on the Committees that are taking up utility restructuring legislation
to ensure that this industry, whether in its current form or in a
restructured form, finally comes to terms with the environmental costs
of its operations.
While the 105th Congress may not have much of an environmental record
to brag about, pressure is mounting to dramatically reduce the
environmental impact from fossil fuel fired power plants. The people of
Vermont are willing, I look forward to working hard in the first
session of the 106th Congress to enact this much needed and long-
overdue piece of legislation.
Mr. President, I ask unanimous consent that the full text of the bill
and the section-by-section overview be printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 2636
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Clean
Power Plant and Modernization Act of 1998''.
(b) Table of Contents.--The table of contents of this Act
is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Definitions.
Sec. 4. Combustion heat rate efficiency standards for fossil fuel-fired
generating units.
Sec. 5. Air emission standards for fossil fuel-fired generating units.
Sec. 6. Accelerated depreciation for investor-owned generating units.
Sec. 7. Grants for publicly owned generating units.
Sec. 8. Clean Air Trust Fund.
Sec. 9. Carbon dioxide emission fees.
Sec. 10. Extension of renewable energy production credit.
Sec. 11. Recognition of permanent emission reductions in future climate
change implementation programs.
Sec. 12. Renewable power generation technologies.
Sec. 13. Evaluation of implementation of this Act and other statutes.
Sec. 14. Assistance for workers adversely affected by reduced
consumption of coal.
Sec. 15. Community economic development incentives for communities
adversely affected by reduced consumption of coal.
Sec. 16. Carbon sequestration.
SEC. 2. FINDINGS AND PURPOSES.
(a) Findings.--Congress finds that--
(1) the United States is relying increasingly on old,
needlessly inefficient, and highly polluting powerplants to
provide electricity;
(2) the pollution from those powerplants causes a wide
range of health and environmental damage, including--
(A) fine particulate matter that is associated with the
deaths of approximately 50,000 Americans annually;
(B) urban ozone, commonly known as ``smog'', that impairs
normal respiratory functions and is of special concern to
individuals afflicted with asthma, emphysema, and other
respiratory ailments;
(C) rural ozone that obscures visibility and damages
forests and wildlife;
(D) acid deposition that damages estuaries, lakes, rivers,
and streams (and the plants and animals that depend on them
for survival) and leaches heavy metals from the soil;
(E) mercury and heavy metal contamination that renders fish
unsafe to eat, with especially serious consequences for
pregnant women and their fetuses;
(F) eutrophication of estuaries, lakes, rivers, and
streams; and
(G) global climate change that may fundamentally and
irreversibly alter human, animal, and plant life;
(3) tax laws and environmental laws--
(A) provide a very strong incentive for electric utilities
to keep old, dirty, and inefficient generating units in
operation; and
(B) provide a strong disincentive to investing in new,
clean, and efficient generating technologies;
(4) fossil fuel-fired power plants, consisting of plants
fueled by coal, fuel oil, and natural gas, produce nearly
two-thirds of the electricity generated in the United States;
(5) since, according to the Department of Energy, the
average combustion heat rate efficiency of fossil fuel-fired
power plants in the United States is 33 percent, 67 percent
of the heat generated by burning the fuel is wasted;
(6) technology exists to increase the combustion heat rate
efficiency of coal combustion from 35 percent to 50 percent
above current levels, and technological advances are possible
that would boost the net combustion heat rate efficiency even
more;
(7) coal-fired power plants are the leading source of
mercury emissions in the United States, releasing an
estimated 52 tons of this potent neurotoxin each year;
(8) in 1996, fossil fuel-fired power plants in the United
States produced over 2,000,000,000 tons of carbon dioxide,
the primary greenhouse gas;
(9) on average--
(A) fossil fuel-fired power plants emit 1,999 pounds of
carbon dioxide for every megawatt hour of electricity
produced;
(B) coal-fired power plants emit 2,110 pounds of carbon
dioxide for every megawatt hour of electricity produced; and
(C) coal-fired power plants emit 205 pounds of carbon
dioxide for every million British thermal units of fuel
consumed;
(10) the average fossil fuel-fired generating unit in the
United States commenced operation in 1964, 6 years before the
Clean Air Act (42 U.S.C. 7401 et seq.) was amended to
establish requirements for stationary sources;
(11)(A) according to the Department of Energy, only 23
percent of the 1,000 largest emitting units are subject to
stringent new source performance standards under section 111
of the Clean Air Act (42 U.S.C. 7411); and
(B) the remaining 77 percent, commonly referred to as
``grandfathered'' power plants, are subject to much less
stringent requirements;
(12) on the basis of scientific and medical evidence,
exposure to mercury and mercury
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compounds is of concern to human health and the environment;
(13) pregnant women and their developing fetuses, women of
childbearing age, and children are most at risk for mercury-
related health impacts such as neurotoxicity;
(14) although exposure to mercury and mercury compounds
occurs most frequently through consumption of mercury-
contaminated fish, such exposure can also occur through--
(A) ingestion of breast milk;
(B) ingestion of drinking water, and foods other than fish,
that are contaminated with methyl mercury; and
(C) dermal uptake through contact with soil and water;
(15) the report entitled ``Mercury Study Report to
Congress'' and submitted by the Environmental Protection
Agency under section 112(n)(1)(B) of the Clean Air Act (42
U.S.C. 7412(n)(1)(B)), in conjunction with other scientific
knowledge, supports a plausible link between mercury
emissions from combustion of coal and other fossil fuels and
mercury concentrations in air, soil, water, and sediments;
(16)(A) the Environmental Protection Agency report
described in paragraph (15) supports a plausible link between
mercury emissions from combustion of coal and other fossil
fuels and methyl mercury concentrations in freshwater fish;
(B) in 1997, 39 States issued health advisories that warned
the public about consuming mercury-tainted fish, as compared
to 27 States that issued such advisories in 1993; and
(C) the number of mercury advisories nationwide increased
from 899 in 1993 to 1,675 in 1996, an increase of 86 percent;
(17) pollution from powerplants can be reduced and possibly
eliminated through adoption of modern technologies and
practices, including--
(A) methods of combusting coal that are intrinsically more
efficient and less polluting, such as pressurized fluidized
bed combustion and an integrated gasification combined cycle
system;
(B) methods of combusting cleaner fuels, such as gases from
fossil and biological resources and combined cycle turbines;
(C) treating flue gases through application of pollution
controls;
(D) methods of extracting energy from natural, renewable
resources of energy, such as solar and wind sources;
(E) methods of producing electricity and thermal energy
from fuels without conventional combustion, such as fuel
cells; and
(F) methods of extracting and using heat that would
otherwise be wasted, for the purpose of heating or cooling
office buildings, providing steam to processing facilities,
or otherwise increasing total efficiency; and
(18) adopting the technologies and practices described in
paragraph (17) would increase competitiveness and
productivity, secure employment, save lives, and preserve the
future.
(b) Purposes.--The purposes of this Act are--
(1) to protect and preserve the environment while
safeguarding health by ensuring that each fossil fuel-fired
generating unit minimizes air pollution to levels that are
technologically feasible through modernization and
application of pollution controls;
(2) to greatly reduce the quantities of mercury, carbon
dioxide, sulfur dioxide, and nitrogen oxides entering the
environment from combustion of fossil fuels;
(3) to permanently reduce emissions of those pollutants by
increasing the combustion heat rate efficiency of fossil
fuel-fired generating units to levels achievable through use
of commercially available combustion technology, installation
of pollution controls, and expanded use of renewable energy
sources such as biomass, geothermal, solar, and wind sources;
(4)(A) to create financial and regulatory incentives to
retire thermally inefficient generating units and replace
them with new units that employ high-thermal-efficiency
combustion technology; and
(B) to increase use of renewable energy sources such as
biomass, geothermal, solar, and wind sources;
(5) to establish the Clean Air Trust Fund for the purpose
of encouraging and facilitating the modernization of fossil
fuel-fired generating units in the United States;
(6) to eliminate the ``grandfather'' loophole in the Clean
Air Act relating to sources in operation before the
promulgation of standards under section 111 of that Act (42
U.S.C. 7411);
(7) to express the sense of Congress that permanent
reductions in emissions of greenhouse gases that are
accomplished through the retirement of old units and
replacement by new units that meet the combustion heat rate
efficiency and emission standards specified in this Act
should be credited to the utility sector in any climate
change implementation program;
(8) to promote permanent and safe disposal of mercury
recovered through coal cleaning, flue gas control systems,
and other methods of mercury pollution control;
(9) to increase public knowledge of the sources of mercury
exposure and the threat to public health from mercury,
particularly the threat to the health of pregnant women and
their fetuses, women of childbearing age, and children;
(10) to decrease significantly the threat to human health
and the environment posed by mercury;
(11) to promote energy efficiency in homes, including major
appliances;
(12) to provide worker retraining for workers adversely
affected by reduced consumption of coal; and
(13) to provide economic development incentives for
communities adversely affected by reduced consumption of
coal.
SEC. 3. DEFINITIONS.
In this Act:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Environmental Protection Agency.
(2) Generating unit.--The term ``generating unit'' means an
electric utility generating unit.
SEC. 4. COMBUSTION HEAT RATE EFFICIENCY STANDARDS FOR FOSSIL
FUEL-FIRED GENERATING UNITS.
(a) Standards.--
(1) In general.--Not later than the day that is 10 years
after the date of enactment of this Act, each fossil fuel-
fired generating unit that commences operation on or before
that day shall achieve and maintain, at all operating levels,
a combustion heat rate efficiency of not less than 45 percent
(based on the higher heating value of the fuel).
(2) Future generating units.--Each fossil fuel-fired
generating unit that commences operation more than 10 years
after the date of enactment of this Act shall achieve and
maintain, at all operating levels, a combustion heat rate
efficiency of not less than 50 percent (based on the higher
heating value of the fuel), unless granted a waiver under
subsection (d).
(b) Test Methods.--Not later than 2 years after the date of
enactment of this Act, the Administrator, in consultation
with the Secretary of Energy, shall promulgate methods for
determining initial and continuing compliance with this
section.
(c) Permit Requirement.--Not later than 10 years after the
date of enactment of this Act, each generating unit shall
have a permit issued under title V of the Clean Air Act (42
U.S.C. 7661 et seq.) that requires compliance with this
section.
(d) Waiver of Combustion Heat Rate Efficiency Standard.--
(1) Application.--The owner or operator of a generating
unit that commences operation more than 10 years after the
date of enactment of this Act may apply to the Administrator
for a waiver of the combustion heat rate efficiency standard
specified in subsection (a)(2) that is applicable to that
type of generating unit.
(2) Issuance.--The Administrator may grant the waiver only
if--
(A)(i) the owner or operator of the generating unit
demonstrates that the technology to meet the combustion heat
rate efficiency standard is not commercially available; or
(ii) the owner or operator of the generating unit
demonstrates that, despite best technical efforts and
willingness to make the necessary level of financial
commitment, the combustion heat rate efficiency standard is
not achievable at the generating unit; and
(B) the owner or operator of the generating unit enters
into an agreement with the Administrator to offset by a
factor of 1.5 to 1, using a method approved by the
Administrator, the emission reductions that the generating
unit does not achieve because of the failure to achieve the
combustion heat rate efficiency standard specified in
subsection (a)(2).
(3) Effect of waiver.--If the Administrator grants a waiver
under paragraph (1), the generating unit shall be required to
achieve and maintain, at all operating levels, the combustion
heat rate efficiency standard specified in subsection (a)(1).
SEC. 5. AIR EMISSION STANDARDS FOR FOSSIL FUEL-FIRED
GENERATING UNITS.
(a) All Fossil Fuel-Fired Generating Units.--Not later than
10 years after the date of enactment of this Act, each fossil
fuel-fired generating unit, regardless of its date of
construction or commencement of operation, shall be subject
to, and operating in physical and operational compliance
with, the new source review requirements under section 111 of
the Clean Air Act (42 U.S.C. 7411).
(b) Emission Rates for Sources Required to Maintain 45
Percent Efficiency.--Not later than 10 years after the date
of enactment of this Act, each fossil fuel-fired generating
unit subject to section 4(a)(1) shall be in compliance with
the following emission limitations:
(1) Mercury.--Each coal-fired or fuel oil-fired generating
unit shall be required to remove 95 percent of the mercury
contained in the fuel, calculated in accordance with
subsection (e).
(2) Carbon dioxide.--
(A) Natural gas-fired generating units.--Each natural gas-
fired generating unit shall be required to achieve an
emission rate of not more than 0.9 pounds of carbon dioxide
per kilowatt hour of net electric power output.
(B) Fuel oil-fired generating units.--Each fuel oil-fired
generating unit shall be required to achieve an emission rate
of not more than 1.3 pounds of carbon dioxide per kilowatt
hour of net electric power output.
(C) Coal-fired generating units.--Each coal-fired
generating unit shall be required to achieve an emission rate
of not more than 1.55 pounds of carbon dioxide per kilowatt
hour of net electric power output.
(3) Sulfur dioxide.--Each fossil fuel-fired generating unit
shall be required--
(A) to remove 95 percent of the sulfur dioxide that would
otherwise be present in the flue gas; and
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(B) to achieve an emission rate of not more than 0.3 pounds
of sulfur dioxide per million British thermal units of fuel
consumed.
(4) Nitrogen oxides.--Each fossil fuel-fired generating
unit shall be required--
(A) to remove 90 percent of nitrogen oxides that would
otherwise be present in the flue gas; and
(B) to achieve an emission rate of not more than 0.15
pounds of nitrogen oxides per million British thermal units
of fuel consumed.
(c) Emission Rates for Sources Required to Maintain 50
Percent Efficiency.--Each fossil fuel-fired generating unit
subject to section 4(a)(2) shall be in compliance with the
following emission limitations:
(1) Mercury.--Each coal-fired or fuel oil-fired generating
unit shall be required to remove 95 percent of the mercury
contained in the fuel, calculated in accordance with
subsection (e).
(2) Carbon dioxide.--
(A) Natural gas-fired generating units.--Each natural gas-
fired generating unit shall be required to achieve an
emission rate of not more than 0.8 pounds of carbon dioxide
per kilowatt hour of net electric power output.
(B) Fuel oil-fired generating units.--Each fuel oil-fired
generating unit shall be required to achieve an emission rate
of not more than 1.2 pounds of carbon dioxide per kilowatt
hour of net electric power output.
(C) Coal-fired generating units.--Each coal-fired
generating unit shall be required to achieve an emission rate
of not more than 1.4 pounds of carbon dioxide per kilowatt
hour of net electric power output.
(3) Sulfur dioxide.--Each fossil fuel-fired generating unit
shall be required--
(A) to remove 95 percent of the sulfur dioxide that would
otherwise be present in the flue gas; and
(B) to achieve an emission rate of not more than 0.3 pounds
of sulfur dioxide per million British thermal units of fuel
consumed.
(4) Nitrogen oxides.--Each fossil fuel-fired generating
unit shall be required--
(A) to remove 90 percent of nitrogen oxides that would
otherwise be present in the flue gas; and
(B) to achieve an emission rate of not more than 0.15
pounds of nitrogen oxides per million British thermal units
of fuel consumed.
(d) Permit Requirement.--Not later than 10 years after the
date of enactment of this Act, each generating unit shall
have a permit issued under title V of the Clean Air Act (42
U.S.C. 7661 et seq.) that requires compliance with this
section.
(e) Compliance Determination and Monitoring.--
(1) Regulations.--Not later than 2 years after the date of
enactment of this Act, the Administrator, in consultation
with the Secretary of Energy, shall promulgate methods for
determining initial and continuing compliance with this
section.
(2) Calculation of mercury emission reductions.--Not later
than 2 years after the date of enactment of this Act, the
Administrator shall promulgate fuel sampling techniques and
emission monitoring techniques for use by generating units in
calculating mercury emission reductions for the purposes of
this section.
(3) Reporting.--
(A) In general.--Not less than often than quarterly, the
owner or operator of a generating unit shall submit a
pollutant-specific emission report for each pollutant covered
by this section.
(B) Signature.--Each report required under subparagraph (A)
shall be signed by a responsible official of the generating
unit, who shall certify the accuracy of the report.
(C) Public reporting.--The Administrator shall annually
make available to the public, through 1 or more published
reports and 1 or more forms of electronic media, facility-
specific emission data for each generating unit and pollutant
covered by this section.
(f) Disposal of Mercury Captured or Recovered Through
Emission Controls.--
(1) Captured or recovered mercury.--Not later than 2 years
after the date of enactment of this Act, the Administrator
shall promulgate regulations to ensure that mercury that is
captured or recovered through the use of an emission control,
coal cleaning, or another method is disposed of in a manner
that ensures that--
(A) the hazards from mercury are not transferred from 1
environmental medium to another; and
(B) there is no release of mercury into the environment.
(2) Mercury-containing sludges and wastes.--The regulations
promulgated by the Administrator under paragraph (1) shall
ensure that mercury-containing sludges and wastes are handled
and disposed of in accordance with all applicable Federal and
State laws (including regulations).
(g) Public Reporting of Facility-Specific Emission Data.--
(1) In general.--The Administrator shall annually make
available to the public, through 1 or more published reports
and the Internet, facility-specific emission data for each
generating unit and for each pollutant covered by this
section.
(2) Source of data.--The emission data shall be taken from
the emission reports submitted under subsection (e)(3).
SEC. 6. ACCELERATED DEPRECIATION FOR INVESTOR-OWNED
GENERATING UNITS.
(a) In General.--Section 168(e)(3) of the Internal Revenue
Code of 1986 (relating to classification of certain property)
is amended--
(1) in subparagraph (D) (relating to 10-year property), by
striking ``and'' at the end of clause (i), by striking the
period at the end of clause (ii) and inserting ``, and'', and
by adding at the end the following:
``(iii) any 50-percent efficient fossil fuel-fired
generating unit.''; and
(2) in subparagraph (E) (relating to 15-year property), by
striking ``and'' at the end of clause (ii), by striking the
period at the end of clause (iii) and inserting ``, and'',
and by adding at the end the following:
``(iv) any 45-percent efficient fossil fuel-fired
generating unit.''.
(b) Definitions.--Section 168(i) of the Internal Revenue
Code of 1986 (relating to definitions and special rules) is
amended by adding at the end the following:
``(15) Fossil fuel-fired generating units.--
``(A) 50-percent efficient fossil fuel-fired generating
unit.--The term `50-percent efficient fossil fuel-fired
generating unit' means any property used in an investor-owned
fossil fuel-fired generating unit pursuant to a plan approved
by the Secretary, in consultation with the Administrator of
the Environmental Protection Agency, to place into service
such a unit that is in compliance with sections 4(a)(2) and
5(c) of the Clean Power Plant and Modernization Act of 1998,
as in effect on the date of enactment of this paragraph.
``(B) 45-percent efficient fossil fuel-fired generating
unit.--The term `45-percent efficient fossil fuel-fired
generating unit' means any property used in an investor-owned
fossil fuel-fired generating unit pursuant to a plan so
approved to place into service such a unit that is in
compliance with sections 4(a)(1) and 5(b) of such Act, as so
in effect.''.
(c) Effective Date.--The amendments made by this section
shall apply to property used after the date of enactment of
this Act.
SEC. 7. GRANTS FOR PUBLICLY OWNED GENERATING UNITS.
Any capital expenditure made after the date of enactment of
this Act to purchase, install, and bring into commercial
operation any new publicly owned generating unit that--
(1) is in compliance with sections 4(a)(1) and 5(b) shall,
for a 15-year period, be eligible for partial reimbursement
through annual grants made by the Secretary of the Treasury,
in consultation with the Administrator, in an amount equal to
the monetary value of the depreciation deduction that would
be realized by reason of section 168(c)(3)(E) of the Internal
Revenue Code of 1986 by a similarly-situated investor-owned
generating unit over that period; and
(2) is in compliance with sections 4(a)(2) and 5(c) shall,
over a 10-year period, be eligible for partial reimbursement
through annual grants made by the Secretary of the Treasury,
in consultation with the Administrator, in an amount equal to
the monetary value of the depreciation deduction that would
be realized by reason of section 168(c)(3)(D) of such Code by
a similarly-situated investor-owned generating unit over that
period.
SEC. 8. CLEAN AIR TRUST FUND.
(a) In General.--Subchapter A of chapter 98 of the Internal
Revenue Code of 1986 (relating to trust fund code) is amended
by adding at the end the following:
``SEC. 9511. CLEAN AIR TRUST FUND.
``(a) Creation of Trust Fund.--There is established in the
Treasury of the United States a trust fund to be known as the
`Clean Air Trust Fund' (hereafter referred to in this section
as the `Trust Fund'), consisting of such amounts as may be
appropriated or credited to the Trust Fund as provided in
this section or section 9602(b).
``(b) Transfers to Trust Fund.--
``(1) In general.--There are hereby appropriated to the
Trust Fund amounts equivalent to the taxes received in the
Treasury under section 4691.
``(2) Authorization of appropriations.--There are
authorized to be appropriated to the Trust Fund such
additional sums as are necessary to carry out the activities
described in subsection (c).
``(c) Expenditures From Trust Fund.--Amounts in the Trust
Fund shall be available, as provided by appropriation Acts,
upon request by the head of the appropriate Federal agency in
such amounts as the agency head determines are necessary--
``(1) to offset reductions of revenues to the Treasury
resulting from the amendments made by section 6 of the Clean
Power Plant and Modernization Act of 1998;
``(2) to provide grants under section 7 of such Act, as in
effect on the date of enactment of this section;
``(3) to provide assistance under section 14 of such Act,
as so in effect;
``(4) to provide community economic development incentives
under section 15, as so in effect; and
``(5) to provide funding under section 16 of such Act, as
so in effect.''.
(b) Conforming Amendment.--The table of sections for such
subchapter A is amended by adding at the end the following:
``Sec. 9511. Clean Air Trust Fund.''.
SEC. 9. CARBON DIOXIDE EMISSION FEES.
(a) In General.--Chapter 38 of subtitle D of the Internal
Revenue Code of 1986 (relating to miscellaneous excise taxes)
is amended by inserting after subchapter D the following:
``Subchapter E--Carbon Dioxide Emission Fees
``Sec. 4691. Imposition of fees.
[[Page S12652]]
``SEC. 4691. IMPOSITION OF FEES.
``(a) Tax Imposed.--There is hereby imposed on each fossil
fuel-fired generating unit with a generating capacity of 5 or
more megawatts a tax equal to $50 per ton of carbon dioxide
emitted by such generating unit.
``(b) Phased-in Rate.--In the case of--
``(1) calendar years 2003 through 2006, subsection (a)
shall be applied by substituting `$25' for `$50'; and
``(2) calendar years 2007 through 2009, subsection (a)
shall be applied by substituting `$37.50' for `$50'.
``(c) Adjustment of Rates.--Not less often than once every
2 years beginning after 2002, the Secretary, in consultation
with the Administrator of the Environmental Protection
Agency, shall evaluate the rate of the tax imposed by
subsection (a) and increase the rate if necessary for the
calendar year--
``(1) to ensure that emissions of carbon dioxide are
reduced to levels that are adequate to protect sensitive
populations, with an adequate margin of safety, against
adverse health effects;
``(2) to ensure that emissions of carbon dioxide are
reduced to levels (including, if necessary, a level of zero
emissions) that preclude any reasonable possibility that the
environment, including sensitive species or ecosystems, will
be seriously or permanently altered on a global, continental,
or subcontinental scale;
``(3) to provide adequate incentives for generating units
to minimize emissions of carbon dioxide to levels that are
technologically feasible, including a level of zero
emissions; and
``(4) to eliminate any economic benefit that a generating
unit may derive from the emission of carbon dioxide.
``(d) Payment of Tax.--The tax imposed by this section--
``(1) shall be paid quarterly by the owner or operator of
each fossil fuel-fired generating unit; and
``(2) shall be based on the measured emissions of the
generating unit.
``(e) Fossil Fuel-Fired Generating Unit.--The term `fossil
fuel-fired generating unit' means a generating unit (as
defined in section 3(2) of the Clean Power Plant and
Modernization Act of 1998) powered by fossil fuels.''.
(b) Conforming Amendment.--The table of subchapters for
chapter 38 of such Code is amended by inserting after the
item relating to subchapter D the following:
``Subchapter E. Carbon dioxide emission fees.''.
(c) Effective Date.--The amendments made by this section
shall apply to emissions in calendar years beginning after
December 31, 2002.
SEC. 10. EXTENSION OF RENEWABLE ENERGY PRODUCTION CREDIT.
Section 45(c) of the Internal Revenue Code of 1986
(relating to definitions) is amended--
(1) in paragraph (1)--
(A) in subparagraph (A), by striking ``and'';
(B) in subparagraph (B), by striking the period and
inserting ``, and''; and
(C) by adding at the end the following:
``(C) solar power.'';
(2) in paragraph (3)--
(A) by inserting ``, and December 31, 1998, in the case of
a facility using solar power to produce electricity'' after
``electricity''; and
(B) by striking ``1999'' and inserting ``2010''; and
(3) by adding at the end the following:
``(4) Solar power.--The term `solar power' means solar
power harnessed through--
``(A) photovoltaic systems,
``(B) solar boilers that provide process heat, and
``(C) any other means.''.
SEC. 11. RECOGNITION OF PERMANENT EMISSION REDUCTIONS IN
FUTURE CLIMATE CHANGE IMPLEMENTATION PROGRAMS.
It is the sense of Congress that permanent reductions in
emissions of carbon dioxide and nitrogen oxides that are
accomplished through the retirement of old generating units
and replacement by new generating units that meet the
combustion heat rate efficiency and emission standards
specified in this Act, or through replacement of old
generating units with nonpolluting renewable power generation
technologies, should be credited to the utility sector, and
to the owner or operator that retires or replaces the old
generating unit, in any climate change implementation program
enacted by Congress.
SEC. 12. RENEWABLE POWER GENERATION TECHNOLOGIES.
(a) In General.--Under the Renewable Energy and Energy
Efficiency Technology Act of 1989 (42 U.S.C. 12001 et seq.),
the Secretary of Energy shall fund research and development
programs and commercial demonstration projects and
partnerships to demonstrate the commercial viability and
environmental benefits of electric power generation from
biomass, geothermal, solar, and wind technologies.
(b) Types of Projects.--Demonstration projects may include
solar power tower plants, solar dishes and engines, co-firing
of biomass with coal, biomass modular systems, next-
generation wind turbines and wind turbine verification
projects, and geothermal energy conversion.
(c) Authorization of Appropriations.--In addition to
amounts made available under any other law, there is
authorized to be appropriated to carry out this section
$75,000,000 for each of fiscal years 2003 through 2015.
SEC. 13. EVALUATION OF IMPLEMENTATION OF THIS ACT AND OTHER
STATUTES.
(a) In General.--Not later than 2 years after the date of
enactment of this Act, the Secretary of Energy, in
consultation with the Chairman of the Federal Energy
Regulatory Commission and the Administrator, shall submit to
Congress a report on the implementation of this Act.
(b) Identification of Conflicting Law.--The report shall
identify any provision of the Energy Policy Act of 1992
(Public Law 102-486), the Energy Supply and Environmental
Coordination Act of 1974 (15 U.S.C. 791 et seq.), the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601 et
seq.), or the Powerplant and Industrial Fuel Use Act of 1978
(42 U.S.C. 8301 et seq.), or the amendments made by those
Acts, that conflicts with the intent or efficient
implementation of this Act.
(c) Recommendations.--The report shall include
recommendations from the Secretary of Energy, the Chairman of
the Federal Energy Regulatory Commission, and the
Administrator for legislative or administrative measures to
harmonize and streamline the statutes specified in subsection
(b) and the regulations implementing those statutes.
SEC. 14. ASSISTANCE FOR WORKERS ADVERSELY AFFECTED BY REDUCED
CONSUMPTION OF COAL.
In addition to amounts made available under any other law,
there is authorized to be appropriated $75,000,000 for each
of fiscal years 2003 through 2010, and $50,000,000 for each
of fiscal years 2011 through 2015, to provide assistance,
under the economic dislocation and worker adjustment
assistance program of the Department of Labor authorized by
title III of the Job Training Partnership Act (29 U.S.C. 1651
et seq.), to coal industry workers who are terminated from
employment as a result of reduced consumption of coal by the
electric power generation industry.
SEC. 15. COMMUNITY ECONOMIC DEVELOPMENT INCENTIVES FOR
COMMUNITIES ADVERSELY AFFECTED BY REDUCED
CONSUMPTION OF COAL.
In addition to amounts made available under any other law,
there is authorized to be appropriated $75,000,000 for each
of fiscal years 2003 through 2010, and $50,000,000 for each
of fiscal years 2011 through 2015, to provide assistance,
under the economic adjustment program of the Department of
Commerce authorized by the Public Works and Economic
Development Act of 1965 (42 U.S.C. 3121 et seq.), to assist
communities adversely affected by reduced consumption of coal
by the electric power generation industry.
SEC. 16. CARBON SEQUESTRATION.
(a) Carbon Sequestration Strategy.--In addition to amounts
made available under any other law, there is authorized to be
appropriated to the Environmental Protection Agency and the
Department of Energy for each of fiscal years 2003 through
2005 a total of $15,000,000 to conduct research and
development activities in basic and applied science in
support of development by January 1, 2005, of a carbon
sequestration strategy that is designed to offset all growth
in carbon dioxide emissions in the United States after 2010.
(b) Methods for Biologically Sequestering Carbon Dioxide.--
In addition to amounts made available under any other law,
there is authorized to be appropriated to the Environmental
Protection Agency and the Department of Agriculture for each
of fiscal years 2003 through 2015 a total of $15,000,000 to
carry out soil restoration, tree planting, wetland
protection, and other methods of biologically sequestering
carbon dioxide.
____
Section-by-Section Overview of the ``Clean Power Plant and
Modernization Act of 1998''
What will the ``Clean Power Plant and Modernization Act of
1998'' do?
The ``Clean Power Plant and Modernization Act of 1998''
lays out an ambitious, achievable, and balanced set of
financial incentives and regulatory requirements designed to
increase power plant efficiency, reduce emissions, and
encourage use of renewable power generation methods. The bill
encourages innovation, entrepreneurship, and risk-taking.
The bill encourages ``retirement and replacement'' of old,
dirty, inefficient generating capacity. It does not utilize a
``cap and trade'' approach. Many believe that the
``retirement and replacement'' approach does a superior job
at the local and regional levels of protecting public health
and the environment from mercury pollution, ozone pollution,
and acid deposition. On a global level, the ``retirement and
replacement'' also does a much superior job of permanently
reducing the volume of carbon dioxide emitted.
Section 4. Combustion Heat Rate Efficiency Standards for
Fossil Fuel-Fired Generating Units.
Fossil fuel-fired power plants in the United States operate
at an average combustion efficiency of 33%. Put another way,
on average, 67% of the heat generated by burning the fuel is
wasted. Increasing combustion efficiency is really the only
way to reduce carbon dioxide emissions. Section 4 lays out a
phased two-stage process for increasing efficiency. In the
first stage, by 10 years after enactment, all units in
operation must achieve a combustion heat rate efficiency of
not less than 45%. In the second stage, with expected
advances in combustion technology, units commencing operation
more than 10 years after enactment must achieve
[[Page S12653]]
a combustion heat rate efficiency of not less than 50%.
Carbon dioxide emission reductions of at least 650 million
tons per year are expected, and the potential exists for even
larger reductions.
If, for some unforeseen reason, technological advances do
not achieve the 50% efficiency level, Section 4 contains a
waiver provision that allows owners of new units to offset
any shortfall in carbon dioxide emissions through
implementation of carbon sequestration projects.
Section 5. Air Emission Standards for Fossil Fuel-Fired
Generating Units.
Subsection (a) eliminates the ``grand father'' loophole in
the Clean Air Act and requires all units, regardless of when
they were constructed or began operation, to comply with
existing new source review requirements under Section 111 of
the Clean Air Act.
Subsection (b) sets mercury, carbon dioxide, sulfur
dioxide, and nitrogen oxide emission standards for units that
are subject to the 45% thermal efficiency standards set forth
in Section 4. For mercury, 95% removal of mercury contained
in the fuel is required. For carbon dioxide, the emission
limits are set by fuel type (i.e., natural gas = 0.9 pounds
per kilowatt hour of output; fuel oil = 1.3 pounds per
kilowatt hour of output; coal = 1.55 pounds per kilowatt hour
of output). Ninety-five percent of sulfur dioxide emissions
(and not more than 0.3 pounds per million Btu's of fuel
consumed), and 90 percent of nitrogen oxides (and not more
than 0.15 pounds per million Btu's of fuel consumed) are to
be removed.
Subsection (c) contains the same emission standards for
mercury, sulfur dioxide, and nitrogen oxides as those in
Subsection (b). Greater combustion efficiency results in
lower emissions of carbon dioxide, and the fuel specific
emission limits at the 50% efficiency level are lowered
accordingly (i.e., natural gas = 0.8 pounds per kilowatt hour
of output; fuel oil = 1.2 pounds per kilowatt hour of output;
coal = 1.4 pounds per kilowatt hour of output). Section 6.
Accelerated Depreciation for Investor-Owned Generating Units.
Under the Internal Revenue Code of 1986, utilities can
depreciate their generating equipment over a 20 year period.
Section 6 amends Section 168 of the Internal Revenue Code of
1986 to allow for depreciation over a 15 year period for
units meeting the 45% efficiency level and the emission
standards in Section 5(b). Section 168 is further amended to
allow for deprecation over a 10 year period for units meeting
the 50% efficiency level and the emission standards in
Section 5(c).
Section 7. Grants for Publicly-Owned Generating Units. No
federal taxes are paid on publicly-owned generating units. To
provide publicly-owned utilities with comparable incentives
to modernize, Section 7 provides for annual grants in an
amount equal to the monetary value of the depreciation
deduction that would be realized by a similarly-situated
investor owned generating unit under Section 6. Units meeting
the 45% efficiency level and the emission standards in
Section 5(b) would receive annual grants over a 15 year
period, and units meeting the 50% efficiency level and the
emission standards in Section 5(c) would receive annual
grants over 10 year period.
Section 8. Clean Air Trust Fund, and Section 9. Carbon
Dioxide Emission Fees.
To offset the impact to the Treasury of the incentives in
Sections 6 and 7, the bill establishes the Clean Air Trust
Fund. The Trust Fund is similar to the Highway Trust Fund or
the Superfund. The revenue for the trust fund will be
provided through phased implementation of a ``per ton fee''
on emissions of carbon dioxide. Implementation of the fee
would begin 3 years after enactment at the rate of $25.00 per
ton. The rate would increase to $37.50 per ton seven years
after enactment, and would be fully implemented 10 years
after enactment at a rate of $50.00 per ton.
The Trust Fund will also be used to pay for assistance to
workers and communities adversely affected by reduced
consumption of coal, research and development for renewable
power generation technologies (e.g., wind, solar, and
biomass), and carbon sequestration projects.
Section 10. Extension of Renewable Energy Production
Credit.
Section 45(c) of the Internal Revenue Code of 1986 is
amended to include solar power, and to extend renewable
energy production credit to 2010 (it is currently set to
expire in 1999). This section expands on S. 1459 (Senator
Leahy is a co-sponsor) which would extend the credit to 2004.
S. 1459 has been referred to the Finance Committee.
Section 11. Recognition of Permanent Emission Reductions in
Future Climate Change Implementation Programs.
This section expresses the sense of Congress that permanent
reductions in emissions of carbon dioxide and nitrogen oxides
that are accomplished through the retirement of old
generating units and replacement by new generating units that
meet the efficiency and emissions standards in the bill, or
through replacement with non-polluting renewable power
generation technologies, should be credited to the utility
sector and to the owner/operator in any climate change
implementation program enacted by Congress.
Section 12. Renewable Power Generation Technologies.
Beginning 3 years after enactment, this section provides
$75 million per year (for a total of $975 million over 13
years) to fund research and development programs and
commercial demonstration projects and partnerships to
demonstrate the commercial viability and environmental
benefits of electric power generation from biomass,
geothermal, solar, and wind technologies. Types of projects
may include solar power tower plants, solar dishes and
engines, co-firing biomass with coal, biomass modular
systems, next-generation wind turbines and wind verification
projects, and geothermal energy conversion.
Section 13. Evaluation of Implementation of this Act and
other Statutes.
Not later than 2 years after enactment, DOE, in
consultation with EPA and FERC, shall report to Congress on
the implementation of the Clean Power Plant and Modernization
Act of 1998. The report shall identify any provision of the
Energy Policy Act of 1992, the Energy Supply and
Environmental Coordination Act of 1974, the Public Utilities
Regulatory Policies Act of 1978, or the Powerplant and
Industrial Fuel Use Act of 1978 that conflicts with the
efficient implementation of the Clean Power Plant and
Modernization Act of 1998. The report shall include
recommendations for legislative or administrative measures to
harmonize and streamline these other statutes.
Section 14. Assistance for Workers Adversely Affected by
Reduced Consumption of Coal.
Beginning 3 years after enactment, this section provides a
total of $850 million over 13 years ($75 million per year for
the first 8 years and $50 million per year for the following
5 years) to provide assistance to coal industry workers who
are adversely affected as a result of reduced consumption of
coal by the electric power generation industry. The funds
will be administered under the economic dislocation and
worker adjustment assistance program of the Department of
Labor authorized by Title III of the Job Training Partnership
Act.
Section 15. Community Economic Development Incentives for
Communities Adversely Affected by Reduced Consumption of
Coal.
Beginning 3 years after enactment, this section provides a
total of $850 million over 13 years ($75 million per year for
the first 8 years and $50 million per year for the following
5 years) to provide assistance to communities adversely
affected as a result of reduced consumption of coal by the
electric power generation industry. The funds will be
administered under the economic adjustment program of the
Department of Commerce authorized by the Public Works and
Economic Development Act of 1965.
Section 16. Carbon Sequestration.
This section authorizes expenditure of $45 million over 3
years for development of a long-term carbon sequestration
strategy for the United States. This section also authorizes
EPA and USDA to fund up to $195 million over 13 years ($15
million per year) for carbon sequestration projects including
soil restoration, tree planting, wetlands protection, and
other ways of biologically sequestering carbon dioxide.
______
By Mr. MURKOWSKI:
S. 2639. A bill to require the Secretary of the Interior to
submit a report on the feasibility and desirability of
recovering the costs of high altitude lifesaving missions on
Mount McKinley in Denali National Park and Preserve, Alaska;
to the Committee on Energy and Natural Resources.
mount mckinley in denali national park and preserve legislation
Mr. MURKOSWKI. Mr. President, today I am introducing
legislation that would require the Secretary of the Interior to report
to Congress on the feasibility and desirability of recovering the cost
to taxpayers of rescuing high altitude climbers on Mt. McKinley in
Denali National Park and Preserve in the State of Alaska.
Mr. President, Denali National Park and Preserve attracts
approximately 355,000 visitors per year who come to see the wildlife,
the grandeur of our State, and to gaze at America's highest peak. Most
are unaware that while they are taking in the breathtaking vista that
is Mt. McKinley, there are approximately another 1,100 persons per year
that are attempting to attain the 20,320 submit.
Climbimg Mt. McKinley is certainly no easy walk in the Park. A
typical year sees a dozen major rescue incidents and one or two fatal
accidents. Extreme and unpredictable weather on Mt. McKinley make high
altitude rescues very dangerous and very expensive.
Over the last few years the National Park Service has actively and
successfully worked to reduce the loss of life and injury to climbers
who have made attempts to climb this mountain. The NPS spends more than
$750,000 per year for education; pre-positioning supplies and materials
at various altitudes on the mountain; the positioning of a special high
altitude helicopter in the Park; and actual rescue attempts.
Just last summer the military and the Park Service spent four days
and $221,818 rescuing 6 sick and injured
[[Page S12654]]
British climbers who disregarded warnings and advice from park ranger
stationed on the mountain. This rescue included what is probably the
world's highest short haul helicopter rescue at 19,000 feet and
entailed a very high level of risk for the rescue team. This is just
one example of many rescues the Park Service conducts each year on Mt.
McKinley.
Mr. President, I personally do not feel that the American taxpayer
should be left with the bill for rescues on this mountain. The Federal
Government does not force these climbers to climb; they engage in this
activity voluntarily and with full knowledge of the risks. While I
admire the courage and tenacity of mountain climbers, I do not think it
is fair to divert scarce park funds from services that benefit the
majority of park visitors for the purpose of providing extraordinarily
expensive services to a small number of users who put themselves in
harm's way with their eyes wide open. Mountain climbers are a special
breed who are proud of their self-sufficiency and independence--and
rightly so. For that reason I think they should recognize the simple
equity of paying their fair share of the public costs of their sport.
As a result of a recent field hearing on this issue, I found that
while I have received many letters of support, there are a few stalwart
individuals who do not agree with my point of view and have raised some
legitimate questions. That is why I want the Secretary of the Interior
to look at the feasibility and desirability of some sort of a cost
recovery system that puts a minimal burden on climbers, whether it be
an insurance requirement or any other scheme. The pros and cons of
these cost recovery mechanisms need to be carefully explored before we
act.
Last but not least, Mr. President, I want the Secretary to evaluate
requiring climbers to show proof of medical insurance so that hospitals
in Alaska and elsewhere are not left holding the bag as they sometimes
are under present circumstances. It is a good neighbor policy that
should be put into effect at the earliest opportunity.
____________________