[Congressional Record Volume 147, Number 92 (Thursday, June 28, 2001)]
[Senate]
[Pages S7099-S7104]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. LEAHY:
  S. 1131. 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 sources review requirements, to 
promote the use of clean coal technologies, and to promote alternative 
energy and clean energy sources such as solar, wind, biomass, and fuel 
cells; to the Committee on Finance.
  Mr. LEAHY. Mr. President, the Administration finally released its 
National Energy Policy last month. As I noted at the time, I have 
serious concerns about several of its recommendations, not the least of 
which was its proposal to build 1,300 to 1,900 new electric power 
plants many of them burning relatively dirty fossil fuels, while, at 
same time, questioning the enforcement of clean air laws that protect 
the public from excess power plant emissions.
  Today, fossil fuel-fired power plants constitute the largest source 
of air pollution in the United States. Every year, they collectively 
emit approximately 2.2 billion tons of carbon dioxide, 13 million tons 
of acid rain-producing sulfur dioxide, 7 million tons of acid rain- and 
smog-producing nitrogen oxides, and 43 tons of highly toxic mercury.
  How could pollutants still be dumped into our atmosphere at this 
scale? One reason that cannot be ignored is that more than 75 percent 
of the fossil-fuel fired power plants in the United States are still 
``grandfathered,'' or exempt from modern Clean Air Act standards. When 
the Clean Air Act and its amendments were passed, Congress assumed that 
old, 1950's era power plants would be retired over time and replaced by 
newer, cleaner plants within 30 years. They were not. Unfortunately, 
utilities have kept these inefficient, pollution-prone power plants on 
line because they are inexpensive. Those grandfathered plants continue 
to burn cheap fuel and refuse to invest in emissions control 
technologies that protect air quality.
  The continuing harm to our atmosphere, lands, waters, State 
economies, and public health by excess power plant emissions is well 
documented. In my home state of Vermont, acid deposition caused by 
emissions of sulfur dioxide and nitrogen oxide has scarred our forests 
and poisoned our streams. Emissions of mercury have contaminated our 
rivers and lakes to the point that statewide advisories against fish 
consumption are necessary to protect citizens. Emissions of greenhouse 
gas threaten to negatively change the climate for Vermont maple trees 
the source of Vermont maple syrup and other economic Vermont crops. And 
despite Vermont's tough air laws and small population, out-of-state 
particulates and smog lower our air quality, endanger our health, and 
ruin views of our Green Mountains.
  Earlier this year, I cosponsored bipartisan legislation, the ``Clean 
Power Act of 2001,'' that strictly capped national power plant 
emissions and ended ``grandfather'' loophole exemptions. To promote 
rapid and reliable changes in the utility industry, that legislation 
also gave utilities the regulatory tools needed to make those changes 
with incentives for free market trading of emissions credits, a so-
called ``cap-and-trade'' mechanism. I remain a supporter of the Clean 
Power Act of 2001 and hope it becomes key to energy policy negotiations 
in Congress. However, I believe we can do even more.
  So today I am introducing a second piece of legislation covering 
power plant emissions that I also intend to promote during the energy 
debate. The ``Clean Power Plant and Modernization Act of 2001'' again 
strictly caps emissions and ends the ``grandfather'' loophole on old 
plants. Instead of providing utilities the incentive of free market 
trading, however, my bill creates strong financial incentives, in the 
form of accelerated tax depreciation, for older utilities that cut 
emissions and upgrade their plants to 45 percent to 50 percent 
efficiency. With current average energy efficiency of U.S. power plants 
at only 33 percent, this bill is another proposal that protects the 
environment and public health while providing the energy industry with 
a comprehensive and predictable set of long-term regulatory 
requirements.
  Under this bill, mercury emissions would be cut by 90 percent, annual 
emissions of sulfur dioxide would be cut by more than 6 million tons 
beyond Phase II Clean Air Act Amendments requirements, and nitrogen 
oxide emissions would be cut by more than 3 million tons per year 
beyond Phase II requirements. This bill would also prevent at least 650 
million tons of carbon dioxide emissions per year.
  And this bill goes beyond emissions caps and transition incentives to 
recognize the emergence of energy technologies that are more 
environmentally sustainable. It provides substantial funding for 
research, development, and commercial demonstrations of renewable and 
clean energy technologies such as solar, wind, biomass, geothermal, and 
fuel cells. It also authorizes expenditures for implementing known ways 
of biologically sequestering carbon dioxide from the atmosphere such as 
planting trees, preserving wetlands, and soil restoration.
  The bill emphasizes the importance of immediately capping, if not 
totally eliminating, the release of mercury from power plants. In 
December, the EPA finally determined to regulate mercury emissions from 
electric utility power plants, an action I strongly commended. However, 
such regulations are years away, and it is uncertain what form they 
will take. Yet, just last year, 41 states issued more than 2,200 fish 
consumption advisories because of mercury contamination. Eleven states, 
including Vermont, issued statewide advisories. In 2000, the National 
Academy of Sciences confirmed the health risks of mercury, emphasizing 
the special vulnerability of unborn and young children. I believe we 
need to do something now.
  As the energy landscape of our nation changes, this bill also 
recognizes the need to train a new national energy work force. As U.S. 
power plants become more efficient and more power is produced by 
renewable technologies, less fossil fuel will be consumed. This will 
have an impact on the workers and communities that produce fossil 
fuels. These effects are likely to be greatest for coal, even with 
significant deployment of clean coal technology. The bill provides 
funding for programs to help workers and communities during the period 
of transition. I am eager to work with organized labor to ensure that 
these provisions address the needs of workers, particularly those who 
may not fully benefit from retraining programs.
  Finally, this bill holds the electric power industry, and Congress, 
accountable for any and all taxpayer dollars used to aid the transition 
to cleaner electric generation facilities. To assess how well clean air 
laws and emissions reductions are working, our nation must have robust, 
nationwide monitoring networks capable of generating reliable, 
consistent, long-term data about natural ecosystems. Networks such as 
the National Atmospheric Deposition Program currently provide the 
national data needed by scientists and Federal agencies to accurately 
assess the trends in pollutant deposition. Yet, over the past 30 years, 
these networks have struggled to survive with ever-decreasing funding. 
My bill provides modest appropriations for both operational support and 
modernization of scientific sites that are so critical to understanding 
of our ecosystems and our public health.
  The American public overwhelmingly supports the environmental 
commitments that we have made since the early 1970s. It is our 
responsibility to preserve the environment for our children and 
grandchildren, and it is our duty to protect their health as well. The 
proposed energy policy of this administration needs to be less about 
drilling and more about energy efficiency and protection of air 
quality. This bill will, I hope, add another way

[[Page S7100]]

in which we can ensure reliable, affordable electric power while 
modernizing energy efficiency and protecting our national resources.
  I ask unanimous consent that the text of the bill, and the section-
by-section overview of the bill be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 1131

       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 2001''.
       (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. Extension of renewable energy production credit.
Sec. 7. Megawatt hour generation fees.
Sec. 8. Clean Air Trust Fund.
Sec. 9. Accelerated depreciation for investor-owned generating units.
Sec. 10. Grants for publicly owned generating units.
Sec. 11. Recognition of permanent emission reductions in future climate 
              change implementation programs.
Sec. 12. Renewable and clean power generation technologies.
Sec. 13. Clean coal, advanced gas turbine, and combined heat and power 
              demonstration program.
Sec. 14. Evaluation of implementation of this Act and other statutes.
Sec. 15. Assistance for workers adversely affected by reduced 
              consumption of coal.
Sec. 16. Community economic development incentives for communities 
              adversely affected by reduced consumption of coal.
Sec. 17. Carbon sequestration.
Sec. 18. Atmospheric monitoring.

     SEC. 2. FINDINGS AND PURPOSES.

       (a) Findings.--Congress finds that--
       (1) the United States is relying increasingly on old, 
     needlessly inefficient, and highly polluting power plants to 
     provide electricity;
       (2) the pollution from those power plants 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 more than 
     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 more than 
     43 tons of this potent neurotoxin each year;
       (8) in 1999, fossil fuel-fired power plants in the United 
     States produced nearly 2,200,000,000 tons of carbon dioxide, 
     the primary greenhouse gas;
       (9) on average, fossil fuel-fired power plants emit 
     approximately 2,000 pounds of carbon dioxide for every 
     megawatt hour of electricity produced;
       (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) according to available scientific and medical 
     evidence, exposure to mercury and mercury compounds is of 
     concern to human health and the environment;
       (13) according to the report entitled ``Toxicological 
     Effects of Methylmercury'' and submitted to Congress by the 
     National Academy of Sciences in 2000, and other scientific 
     and medical evidence, pregnant women and their developing 
     fetuses, women of childbearing age, children, and individuals 
     who subsist primarily on fish 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 methylmercury; 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 methylmercury concentrations in freshwater fish;
       (B) in 2000, 41 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 2,242 in 2000, an increase of 149 
     percent;
       (17) pollution from power plants can be reduced 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) combined heat and power 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;
       (18) adopting the technologies and practices described in 
     paragraph (17) would increase competitiveness and 
     productivity, secure employment, save lives, and preserve the 
     future; and
       (19) accurate, long-term, nationwide monitoring of 
     atmospheric acid and mercury deposition is essential for--
       (A) determining deposition trends;
       (B) evaluating the local and regional transport of 
     emissions; and
       (C) assessing the impact of emission reductions.
       (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--
       (A) use of commercially available combustion technology, 
     including clean coal technologies such as pressurized 
     fluidized bed combustion and an integrated gasification 
     combined cycle system;
       (B) installation of pollution controls;
       (C) expanded use of renewable and clean energy sources such 
     as biomass, geothermal, solar, wind, and fuel cells; and
       (D) promotion of application of combined heat and power 
     technologies;
       (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

[[Page S7101]]

       (B) to increase use of renewable and clean energy sources 
     such as biomass, geothermal, solar, wind, and fuel cells;
       (5) to establish the Clean Air Trust Fund to fund the 
     training, economic development, carbon sequestration, and 
     research, development, and demonstration programs established 
     under this Act;
       (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 and the owner or 
     operator 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 provide worker retraining for workers adversely 
     affected by reduced consumption of coal;
       (12) to provide economic development incentives for 
     communities adversely affected by reduced consumption of 
     coal;
       (13) to promote research concerning renewable energy 
     sources, clean power generation technologies, and carbon 
     sequestration; and
       (14) to promote government accountability for compliance 
     with the Clean Air Act (42 U.S.C. 7401 et seq.) and other 
     emission reduction laws by ensuring accurate, long-term, 
     nationwide monitoring of atmospheric acid and mercury 
     deposition.

     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 90 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
       (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 90 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 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,

[[Page S7102]]

     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.
       (D) Consumer disclosure.--Not later than 2 years after the 
     date of enactment of this Act, the Administrator shall 
     promulgate regulations requiring each owner or operator of a 
     generating unit to disclose to residential consumers of 
     electricity generated by the unit, on a regular basis (but 
     not less often than annually) and in a manner convenient to 
     the consumers, data concerning the level of emissions by the 
     generating unit of each pollutant covered by this section and 
     each air pollutant covered by section 111 of the Clean Air 
     Act (42 U.S.C. 7411).
       (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. 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 (B), by striking ``and'';
       (B) in subparagraph (C), by striking the period and 
     inserting a comma; and
       (C) by adding at the end the following:
       ``(D) solar power, and
       ``(E) geothermal power.'';
       (2) in paragraph (3)--
       (A) in subparagraph (A), by striking ``2002'' and inserting 
     ``2016'';
       (B) in subparagraph (B), by striking ``2002'' and inserting 
     ``2016'';
       (C) in subparagraph (C), by striking ``2002'' and inserting 
     ``2016''; and
       (D) by adding at the end the following:
       ``(D) Solar power facility.--In the case of a facility 
     using solar power to produce electricity, the term `qualified 
     facility' means any facility owned by the taxpayer which is 
     originally placed in service after December 31, 2001, and 
     before January 1, 2016.
       ``(E) Geothermal power facility.--In the case of a facility 
     using geothermal power to produce electricity, the term 
     `qualified facility' means any facility owned by the taxpayer 
     which is originally placed in service after December 31, 
     2001, and before January 1, 2016.''; and
       (3) by adding at the end the following:
       ``(5) Solar power.--The term `solar power' means solar 
     energy harnessed through photovoltaic systems, solar boilers 
     which provide process heat, and any other means.
       ``(6) Geothermal power.--The term `geothermal power' means 
     thermal energy extracted from the earth for the purposes of 
     producing electricity.''.

     SEC. 7. MEGAWATT HOUR GENERATION FEES.

       (a) In General.--Chapter 38 of the Internal Revenue Code of 
     1986 (relating to miscellaneous excise taxes) is amended by 
     inserting after subchapter D the following:

             ``Subchapter E--Megawatt Hour Generation Fees

``Sec. 4691. Imposition of fees.

     ``SEC. 4691. IMPOSITION OF FEES.

       ``(a) Tax Imposed.--There is hereby imposed on each covered 
     fossil fuel-fired generating unit a tax equal to 30 cents per 
     megawatt hour of electricity produced by the covered fossil 
     fuel-fired generating unit.
       ``(b) Adjustment of Rates.--Not less often than once every 
     2 years beginning after 2005, 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 any 
     succeeding calendar year to ensure that the Clean Air Trust 
     Fund established by section 9511 has sufficient amounts to 
     fully fund the activities described in section 9511(c).
       ``(c) Payment of Tax.--The tax imposed by this section 
     shall be paid quarterly by the owner or operator of each 
     covered fossil fuel-fired generating unit.
       ``(d) Covered Fossil Fuel-Fired Generating Unit.--The term 
     `covered fossil fuel-fired generating unit' means an electric 
     utility generating unit which--
       ``(1) is powered by fossil fuels;
       ``(2) has a generating capacity of 5 or more megawatts; and
       ``(3) because of the date on which the generating unit 
     commenced commercial operation, is not subject to all 
     regulations promulgated under section 111 of the Clean Air 
     Act (42 U.S.C. 7411).''.
       (b) Conforming Amendment.--The table of subchapters for 
     such chapter 38 is amended by inserting after the item 
     relating to subchapter D the following:

``Subchapter E. Megawatt hour generation fees.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to electricity produced in calendar years 
     beginning after December 31, 2003.

     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.--There are hereby 
     appropriated to the Trust Fund amounts equivalent to the 
     taxes received in the Treasury under section 4691.
       ``(c) Expenditures From Trust Fund.--Amounts in the Trust 
     Fund shall be available, without further Act of 
     appropriation, upon request by the head of the appropriate 
     Federal agency in such amounts as the agency head determines 
     are necessary--
       ``(1) to provide funding under section 12 of the Clean 
     Power Plant and Modernization Act of 2001, as in effect on 
     the date of enactment of this section;
       ``(2) to provide funding for the demonstration program 
     under section 13 of such Act, as so in effect;
       ``(3) to provide assistance under section 15 of such Act, 
     as so in effect;
       ``(4) to provide assistance under section 16 of such Act, 
     as so in effect; and
       ``(5) to provide funding under section 17 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. 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 (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.''; and
       (2) by adding at the end the following:
       ``(F) 12-year property.--The term `12-year property' 
     includes any 50-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 which is in compliance with sections 4(a)(2) and 
     5(c) of the Clean Power Plant and Modernization Act of 2001, 
     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 which is in 
     compliance with sections 4(a)(1) and 5(b) of such Act, as so 
     in effect.''.
       (c) Conforming Amendment.--The table contained in section 
     168(c) of the Internal Revenue Code of 1986 (relating to 
     applicable recovery period) is amended by inserting after the 
     item relating to 10-year property the following:

  ``12-year property........................................12 years''.

       (d) Effective Date.--The amendments made by this section 
     shall apply to property used after the date of enactment of 
     this Act.

     SEC. 10. 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 12-year period, be eligible for partial reimbursement 
     through annual grants made by the Secretary of the

[[Page S7103]]

     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. 11. RECOGNITION OF PERMANENT EMISSION REDUCTIONS IN 
                   FUTURE CLIMATE CHANGE IMPLEMENTATION PROGRAMS.

       It is the sense of Congress that--
       (1) 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;
       (2) the base year for calculating reductions under a 
     program described in paragraph (1) should be the calendar 
     year preceding the calendar year in which this Act is 
     enacted; and
       (3) a reasonable portion of any monetary value that may 
     accrue from the crediting described in paragraph (1) should 
     be passed on to utility customers.

     SEC. 12. RENEWABLE AND CLEAN 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--
       (1) biomass (excluding unseparated municipal solid waste), 
     geothermal, solar, and wind technologies; and
       (2) fuel cells.
       (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, geothermal energy conversion, and fuel cells.
       (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 2012.

     SEC. 13. CLEAN COAL, ADVANCED GAS TURBINE, AND COMBINED HEAT 
                   AND POWER DEMONSTRATION PROGRAM.

       (a) In General.--Under subtitle B of title XXI of the 
     Energy Policy Act of 1992 (42 U.S.C. 13471 et seq.), the 
     Secretary of Energy shall establish a program to fund 
     projects and partnerships designed to demonstrate the 
     efficiency and environmental benefits of electric power 
     generation from--
       (1) clean coal technologies, such as pressurized fluidized 
     bed combustion and an integrated gasification combined cycle 
     system;
       (2) advanced gas turbine technologies, such as flexible 
     midsized gas turbines and baseload utility scale 
     applications; and
       (3) combined heat and power technologies.
       (b) Selection Criteria.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary of Energy shall 
     promulgate criteria and procedures for selection of 
     demonstration projects and partnerships to be funded under 
     subsection (a).
       (2) Required criteria.--At a minimum, the selection 
     criteria shall include--
       (A) the potential of a proposed demonstration project or 
     partnership to reduce or avoid emissions of pollutants 
     covered by section 5 and air pollutants covered by section 
     111 of the Clean Air Act (42 U.S.C. 7411); and
       (B) the potential commercial viability of the proposed 
     demonstration project or partnership.
       (c) Authorization of Appropriations.--
       (1) In general.--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 2012.
       (2) Distribution.--The Secretary shall make reasonable 
     efforts to ensure that, under the program established under 
     this section, the same amount of funding is provided for 
     demonstration projects and partnerships under each of 
     paragraphs (1), (2), and (3) of subsection (a).

     SEC. 14. 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. 15. 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 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. 16. 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 2012 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. 17. 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 September 30, 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 2012 a total of $30,000,000 to 
     carry out soil restoration, tree planting, wetland 
     protection, and other methods of biologically sequestering 
     carbon dioxide.
       (c) Limitation.--A project carried out using funds made 
     available under this section shall not be used to offset any 
     emission reduction required under any other provision of this 
     Act.

     SEC. 18. ATMOSPHERIC MONITORING.

       (a) Operational Support.--In addition to amounts made 
     available under any other law, there are authorized to be 
     appropriated for each of fiscal years 2003 through 2012--
       (1) for operational support of the National Atmospheric 
     Deposition Program National Trends Network--
       (A) $2,000,000 to the United States Geological Survey;
       (B) $600,000 to the Environmental Protection Agency;
       (C) $600,000 to the National Park Service; and
       (D) $400,000 to the Forest Service;
       (2) for operational support of the National Atmospheric 
     Deposition Program Mercury Deposition Network--
       (A) $400,000 to the Environmental Protection Agency;
       (B) $400,000 to the United States Geological Survey;
       (C) $100,000 to the National Oceanic and Atmospheric 
     Administration; and
       (D) $100,000 to the National Park Service;
       (3) for the National Atmospheric Deposition Program 
     Atmospheric Integrated Research Monitoring Network $1,500,000 
     to the National Oceanic and Atmospheric Administration;
       (4) for the Clean Air Status and Trends Network $5,000,000 
     to the Environmental Protection Agency; and
       (5) for the Temporally Integrated Monitoring of Ecosystems 
     and Long-Term Monitoring Program $2,500,000 to the 
     Environmental Protection Agency.
       (b) Modernization.--In addition to amounts made available 
     under any other law, there are authorized to be 
     appropriated--
       (1) for equipment and site modernization of the National 
     Atmospheric Deposition Program National Trends Network 
     $6,000,000 to the Environmental Protection Agency;
       (2) for equipment and site modernization and network 
     expansion of the National Atmospheric Deposition Program 
     Mercury Deposition Network $2,000,000 to the Environmental 
     Protection Agency;
       (3) for equipment and site modernization and network 
     expansion of the National Atmospheric Deposition Program 
     Atmospheric Integrated Research Monitoring Network $1,000,000 
     to the National Oceanic and Atmospheric Administration; and
       (4) for equipment and site modernization and network 
     expansion of the Clean Air Status and Trends Network 
     $4,600,000 to the Environmental Protection Agency.
       (c) Availability of Amounts.--Each of the amounts 
     appropriated under subsection (b) shall remain available 
     until expended.

[[Page S7104]]

Section-by-Section Overview of the Clean Power Plant and Modernization 
                              Act of 2001


   What will the Clean Power Plant and Modernization Act of 2001 do?

       The Clean Power Plant and Modernization Act of 2001 lays 
     out an ambitious, achievable, and balanced set of financial 
     incentives and regulatory requirements designed to increase 
     power plant efficiency, reduce emissions, and encourage the 
     use of renewable energy and clean power generation methods. 
     The bill encourages innovation, entrepreneurship, and risk-
     taking. In the long term, the bill will reduce acid 
     precipitation, decrease mercury contamination, help mitigate 
     climate change, improve visibility, and safeguard human 
     health.
     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%. This means that, 
     on average, 67% of the heat generated by burning the fuel is 
     wasted. Without changing fuels, increasing combustion 
     efficiency is the best 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 a combustion heat rate efficiency of not less than 
     50%. Carbon dioxide emission reductions on the order of 650 
     millions 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 the owners of new units to 
     offset any shortfall in carbon dioxide emission reductions 
     through implementation of carbon sequestration projects.
     Section 5. Air Emission Standards for Fossil Fuel-Fired 
         Generating Units
       Subsection (a) eliminates the ``grandfather'' 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 standard set forth 
     in Section 4. For mercury, 90% of the mercury contained in 
     the fuel must be removed. 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). 95% of sulfur dioxide emissions and 90% of 
     nitrogen oxide emissions are to be removed, and emissions may 
     not exceed 0.3 pounds of sulfur dioxide and 0.15 pounds of 
     nitrogen oxides per million BTUs of fuel consumed.
       Subsection (c) sets emission standards for units that are 
     subject to the 50% thermal efficiency standard set forth in 
     Section 4. Standards for mercury, sulfur dioxide, and 
     nitrogen oxides are the same as those in Subsection (b). 
     Greater combustion efficiency results in lower emissions of 
     carbon dioxide, and the fuel-specific emission limits 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. Extension of Renewable Energy Production Credit
       Section 45(c) of the Internal Revenue Code of 1986 is 
     amended to include solar power and geothermal power and to 
     extend the renewable energy production credit through 2015. 
     (This credit is currently set to expire in 2001.)
     Section 7. Megawatt-Hour Generation Fees and Section 8. Clean 
         Air Trust Fund
       To offset the impact to the Treasury of the incentives in 
     Sections 9 and 10, 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 by assessing a fee of 30 cents per megawatt-hour of 
     electricity produced by covered electric generating units.
       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 9. 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 9 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 9 also amends Section 168 
     to allow for depreciation over a 12 year period for units 
     meeting the 50% efficiency level and the emission standards 
     in Section 5(c).
     Section 10. 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 10 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 9. 
     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 a 12 year period.
     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 emission 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 and Clean Power Generation Technologies
       This section provides a total of $750 million over 10 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. Clean Coal, Advanced Gas Turbine, and Combined 
         Heat and Power Demonstration Program
       This section provides a total of $750 million over 10 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 clean coal technologies, advanced gas 
     turbine technologies, and combined heat and power 
     technologies.
     Section 14. 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. The report shall identify any provisions of other laws 
     that conflict with the efficient implementation of the Clean 
     Power Plant and Modernization Act. The report shall include 
     recommendations for legislative or administrative measures to 
     harmonize and streamline these other statutes.
     Section 15. Assistance for Workers Adversely Affected by 
         Reduced Consumption of Coal
       Beginning 3 years after enactment, this section provides a 
     total of $975 million over 13 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 16. Community Economic Development Incentives for 
         Communities Adversely Affected by Reduced Consumption of 
         Coal
       Beginning 3 years after enactment, this section provides a 
     total of $975 million over 13 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 17. Carbon Sequestration
       This section authorizes $45 million over 3 years for DOE to 
     conduct research and development in support of a national 
     carbon sequestration strategy. This section also authorizes 
     $300 million over 10 years for EPA and USDA to fund carbon 
     sequestration projects such as soil restoration, tree 
     planting, wetlands protection, and other ways of biologically 
     sequestering carbon.
     Section 18. Atmospheric Monitoring
       This section authorizes $13.6 million over 10 years to 
     support the operation of existing instrument networks that 
     monitor the deposition of sulfates, nitrates, mercury, and 
     other pollutants, as well as the effects of these pollutants 
     of ecosystem health. This section also authorizes a one-time 
     expenditure of $13.6 million for equipment modernization for 
     these instrument networks.
                                 ______