[Congressional Record Volume 149, Number 57 (Wednesday, April 9, 2003)]
[Senate]
[Pages S5076-S5083]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
By Mr. CARPER (for himself, Mr. Chafee, and Mr. Gregg):
S. 843. A bill to amend the Clean Air Act to establish a national
uniform multiple air pollutant regulatory program for the electric
generating sector; to the Committee on Environment and Public Works.
Mr. CARPER. Mr. President, today along with Senators Lincoln Chafee
and Judd Gregg, I am introducing comprehensive legislation to reduce
harmful emissions from our Nation's power plants. Developed after
extensive input from electric generators who would be affected by such
legislation, leaders in the environmental community, and State and
local regulators who will enforce any new requirements, the Clean Air
Planning Act is a balanced approach to a difficult challenge.
The Clean Air Planning Act takes a market-based approach that would
aggressively reduce electric power generators' emissions of sulfur
dioxide, SO2, by 80 percent, nitrogen oxides,
NOX, by 69 percent, mercury by 80 percent, and return carbon
dioxide, CO2, emissions to 2001 levels within a decade. It
provides planning and regulatory certainty to electric generators who
would be required to achieve these regulations.
The negative public health and environmental impacts of
SO2, NOX and mercury emissions have been well
documented. While there is bipartisan agreement that emissions of these
three pollutants from power plants need further control, there is
disagreement over how much and how fast. The bill includes a flexible
trading system that allows for attainment of the caps
[[Page S5077]]
in the most efficient manner and updates the new source review program
to help encourage emission reductions to occur.
There is also a growing consensus that greenhouse gases such as
CO2 emissions from power plants are contributing to climate
change. The time has come to set up mechanisms that will address these
emissions without impeding economic growth. The Clean Air Planning Act
establishes modest goal of capping CO2 emissions from
electrical generators at 2001 levels by 2013. Generators could meet
that goal with a flexible system that allows both trading between
generators and earning credits through off-system reductions of
greenhouse gases.
Today, America's power plants will emit over 6 million tons of
harmful emissions. They will also power the world's most productive
economy. Reducing emissions while retaining affordable electricity is
the goal of the Clean Air Planning Act, and I urge others to join in
this effort.
In the months ahead, this clean air bill and others will be compared
and debated. Opponents and supporters will be heard, but at the outset
I believe we should agree on a set of guiding principles.
Four is better than three: A comprehensive four-emission strategy
that includes carbon reductions provides regulatory certainty and
offers the greatest environmental and economic benefits.
Markets work: Cape and trade based emission standards provide the
maximum incentive to achieve cleaner power.
Stairs are better than cliffs: Prompt but gradual reductions through
multi-phase or declining caps are more desirable than single phased
cuts.
Eliminate redundancy: Existing regulatory programs will need some
modernization in light of tight emission caps.
Clean air is a basic right all Americans deserve. The responsibility
to ensure that right falls to Congress and the President. By putting
our differences aside and focusing on the challenge at hand the result
will be healthy citizens breathing clean air, a vibrant economy with
abundant affordable electricity, and a model for the rest of the world
to follow.
I ask unanimous consent that the text of the bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 843
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 Air
Planning Act of 2003''.
(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. Integrated air quality planning for the electric generating
sector.
Sec. 4. New source review program.
Sec. 5. Revisions to sulfur dioxide allowance program.
Sec. 6. Air quality forecasts and warnings.
Sec. 7. Relationship to other law.
SEC. 2. FINDINGS AND PURPOSES.
(a) Findings.--Congress finds that--
(1) fossil fuel-fired electric generating facilities,
consisting of facilities fueled by coal, fuel oil, and
natural gas, produce nearly \2/3\ of the electricity
generated in the United States;
(2) fossil fuel-fired electric generating facilities
produce approximately \2/3\ of the total sulfur dioxide
emissions, \1/3\ of the total nitrogen oxides emissions, \1/
3\ of the total carbon dioxide emissions, and \1/3\ of the
total mercury emissions, in the United States;
(3)(A) many electric generating facilities have been exempt
from the emission limitations applicable to new units based
on the expectation that over time the units would be retired
or updated with new pollution control equipment; but
(B) many of the exempted units continue to operate and emit
pollutants at relatively high rates;
(4) pollution from existing electric generating facilities
can be reduced through adoption of modern technologies and
practices;
(5) the electric generating industry is being restructured
with the objective of providing lower electricity rates and
higher quality service to consumers;
(6) the full benefits of competition will not be realized
if the environmental impacts of generation of electricity are
not uniformly internalized; and
(7) the ability of owners of electric generating facilities
to effectively plan for the future is impeded by the
uncertainties surrounding future environmental regulatory
requirements that are imposed inefficiently on a piecemeal
basis.
(b) Purposes.--The purposes of this Act are--
(1) to protect and preserve the environment and safeguard
public health by ensuring that substantial emission
reductions are achieved at fossil fuel-fired electric
generating facilities;
(2) to significantly reduce the quantities of mercury,
carbon dioxide, sulfur dioxide, and nitrogen oxides that
enter the environment as a result of the combustion of fossil
fuels;
(3) to encourage the development and use of renewable
energy;
(4) to internalize the cost of protecting the values of
public health, air, land, and water quality in the context of
a competitive market in electricity;
(5) to ensure fair competition among participants in the
competitive market in electricity that will result from fully
restructuring the electric generating industry;
(6) to provide a period of environmental regulatory
stability for owners and operators of electric generating
facilities so as to promote improved management of existing
assets and new capital investments; and
(7) to achieve emission reductions from electric generating
facilities in a cost-effective manner.
SEC. 3. INTEGRATED AIR QUALITY PLANNING FOR THE ELECTRIC
GENERATING SECTOR.
The Clean Air Act (42 U.S.C. 7401 et seq.) is amended by
adding at the end the following:
``TITLE VII--INTEGRATED AIR QUALITY PLANNING FOR THE ELECTRIC
GENERATING SECTOR
``Sec. 701. Definitions.
``Sec. 702. National pollutant tonnage limitations.
``Sec. 703. Nitrogen oxide and mercury allowance trading programs.
``Sec. 704. Carbon dioxide allowance trading program.
``SEC. 701. DEFINITIONS.
``In this title:
``(1) Affected unit.--
``(A) Mercury.--The term `affected unit', with respect to
mercury, means a coal-fired electric generating facility
(including a cogenerating facility) that--
``(i) has a nameplate capacity greater than 25 megawatts;
and
``(ii) generates electricity for sale.
``(B) Nitrogen oxides and carbon dioxide.--The term
`affected unit', with respect to nitrogen oxides and carbon
dioxide, means a fossil fuel-fired electric generating
facility (including a cogenerating facility) that--
``(i) has a nameplate capacity greater than 25 megawatts;
and
``(ii) generates electricity for sale.
``(C) Sulfur dioxide.--The term `affected unit', with
respect to sulfur dioxide, has the meaning given the term in
section 402.
``(2) Carbon dioxide allowance.--The term `carbon dioxide
allowance' means an authorization allocated by the
Administrator under this title to emit 1 ton of carbon
dioxide during or after a specified calendar year.
``(3) Covered unit.--The term `covered unit' means--
``(A) an affected unit;
``(B) a nuclear generating unit with respect to incremental
nuclear generation; and
``(C) a renewable energy unit.
``(4) Greenhouse gas.--The term `greenhouse gas' means--
``(A) carbon dioxide;
``(B) methane;
``(C) nitrous oxide;
``(D) hydrofluorocarbons;
``(E) perfluorocarbons; and
``(F) sulfur hexafluoride.
``(5) Incremental nuclear generation.--The term
`incremental nuclear generation' means the difference
between--
``(A) the quantity of electricity generated by a nuclear
generating unit in a calendar year; and
``(B) the quantity of electricity generated by the nuclear
generating unit in calendar year 1990;
as determined by the Administrator and measured in megawatt
hours.
``(6) Mercury allowance.--The term `mercury allowance'
means an authorization allocated by the Administrator under
this title to emit 1 pound of mercury during or after a
specified calendar year.
``(7) New renewable energy unit.--The term `new renewable
energy unit' means a renewable energy unit that has operated
for a period of not more than 3 years.
``(8) New unit.--The term `new unit' means an affected unit
that has operated for not more than 3 years and is not
eligible to receive--
``(A) sulfur dioxide allowances under section 417(b);
``(B) nitrogen oxide allowances or mercury allowances under
section 703(c)(2); or
``(C) carbon dioxide allowances under section 704(c)(2).
``(9) Nitrogen oxide allowance.--The term `nitrogen oxide
allowance' means an authorization allocated by the
Administrator under this title to emit 1 ton of nitrogen
oxides during or after a specified calendar year.
``(10) Nuclear generating unit.--The term `nuclear
generating unit' means an electric generating facility that--
``(A) uses nuclear energy to supply electricity to the
electric power grid; and
``(B) commenced operation in calendar year 1990 or earlier.
[[Page S5078]]
``(11) Renewable energy.--The term `renewable energy' means
electricity generated from--
``(A) wind;
``(B) organic waste (excluding incinerated municipal solid
waste);
``(C) biomass (including anaerobic digestion from farm
systems and landfill gas recovery);
``(D) fuel cells; or
``(E) a hydroelectric, geothermal, solar thermal,
photovoltaic, or other nonfossil fuel, nonnuclear source.
``(12) Renewable energy unit.--The term `renewable energy
unit' means an electric generating facility that uses
exclusively renewable energy to supply electricity to the
electric power grid.
``(13) Sequestration.--The term `sequestration' means the
action of sequestering carbon by--
``(A) enhancing a natural carbon sink (such as through
afforestation); or
``(B)(i) capturing the carbon dioxide emitted from a fossil
fuel-based energy system; and
``(ii)(I) storing the carbon in a geologic formation; or
``(II) converting the carbon to a benign solid material
through a biological or chemical process.
``(14) Sulfur dioxide allowance.--The term `sulfur dioxide
allowance' has the meaning given the term `allowance' in
section 402.
``SEC. 702. NATIONAL POLLUTANT TONNAGE LIMITATIONS.
``(a) Sulfur Dioxide.--The annual tonnage limitation for
emissions of sulfur dioxide from affected units in the United
States shall be equal to--
``(1) for each of calendar years 2009 through 2012,
4,500,000 tons;
``(2) for each of calendar years 2013 through 2015,
3,500,000 tons; and
``(3) for calendar year 2016 and each calendar year
thereafter, 2,250,000 tons.
``(b) Nitrogen Oxides.--The annual tonnage limitation for
emissions of nitrogen oxides from affected units in the
United States shall be equal to--
``(1) for each of calendar years 2009 through 2012,
1,870,000 tons; and
``(2) for calendar year 2013 and each calendar year
thereafter, 1,700,000 tons.
``(c) Mercury.--
``(1) In general.--The annual tonnage limitation for
emissions of mercury from affected units in the United States
shall be equal to--
``(A) for each of calendar years 2009 through 2012, 24
tons; and
``(B) for calendar year 2013 and each calendar year
thereafter, 10 tons.
``(2) Maximum emissions of mercury from each affected
unit.--
``(A) Calendar years 2009 through 2012.--For each of
calendar years 2009 through 2012, the emissions of mercury
from each affected unit shall not exceed either, at the
option of the operator of the affected unit--
``(i) 50 percent of the total quantity of mercury present
in the coal delivered to the affected unit in the calendar
year; or
``(ii) an annual output-based emission rate for mercury
that shall be determined by the Administrator based on an
input-based rate of 4 pounds per trillion British thermal
units.
``(B) Calendar year 2013 and thereafter.--For calendar year
2013 and each calendar year thereafter, the emissions of
mercury from each affected unit shall not exceed--
``(i) 30 percent of the total quantity of mercury present
in the coal delivered to the affected unit in the calendar
year; or
``(ii) an annual output-based emission rate for mercury
that shall be determined by the Administrator.
``(d) Carbon Dioxide.--Subject to section 704(d), the
annual tonnage limitation for emissions of carbon dioxide
from covered units in the United States shall be equal to--
``(1) for each of calendar years 2009 through 2012, the
quantity of emissions projected to be emitted from affected
units in calendar year 2006, as determined by the Energy
Information Administration of the Department of Energy based
on the projections of the Administration the publication of
which most closely precedes the date of enactment of this
title; and
``(2) for calendar year 2013 and each calendar year
thereafter, the quantity of emissions emitted from affected
units in calendar year 2001, as determined by the Energy
Information Administration of the Department of Energy.
``(e) Review of Annual Tonnage Limitations.--
``(1) Period of effectiveness.--The annual tonnage
limitations established under subsections (a) through (d)
shall remain in effect until the date that is 20 years after
the date of enactment of this title.
``(2) Determination by administrator.--Not later than 15
years after the date of enactment of this title, the
Administrator, after considering impacts on human health, the
environment, the economy, and costs, shall determine whether
1 or more of the annual tonnage limitations should be
revised.
``(3) Determination not to revise.--If the Administrator
determines under paragraph (2) that none of the annual
tonnage limitations should be revised, the Administrator
shall publish in the Federal Register a notice of the
determination and the reasons for the determination.
``(4) Determination to revise.--
``(A) In general.--If the Administrator determines under
paragraph (2) that 1 or more of the annual tonnage
limitations should be revised, the Administrator shall
publish in the Federal Register--
``(i) not later than 15 years and 180 days after the date
of enactment of this title, proposed regulations implementing
the revisions; and
``(ii) not later than 16 years and 180 days after the date
of enactment of this title, final regulations implementing
the revisions.
``(B) Effective date of revisions.--Any revisions to the
annual tonnage limitations under subparagraph (A) shall take
effect on the date that is 20 years after the date of
enactment of this title.
``(f) Reduction of Emissions From Specified Affected
Units.--Subject to the requirements of this Act concerning
national ambient air quality standards established under part
A of title I, notwithstanding the annual tonnage limitations
established under this section, the Federal Government or a
State government may require that emissions from a specified
affected unit be reduced to address a local air quality
problem.
``SEC. 703. NITROGEN OXIDE AND MERCURY ALLOWANCE TRADING
PROGRAMS.
``(a) Regulations.--
``(1) Promulgation.--
``(A) In general.--Not later than January 1, 2005, the
Administrator shall promulgate regulations to establish for
affected units in the United States--
``(i) a nitrogen oxide allowance trading program; and
``(ii) a mercury allowance trading program.
``(B) Requirements.--Regulations promulgated under
subparagraph (A) shall establish requirements for the
allowance trading programs under this section, including
requirements concerning--
``(i)(I) the generation, allocation, issuance, recording,
tracking, transfer, and use of nitrogen oxide allowances and
mercury allowances; and
``(II) the public availability of all information
concerning the activities described in subclause (I) that is
not confidential;
``(ii) compliance with subsection (e)(1);
``(iii) the monitoring and reporting of emissions under
paragraphs (2) and (3) of subsection (e); and
``(iv) excess emission penalties under subsection (e)(4).
``(2) Mixed fuel, co-generation facilities and combined
heat and power facilities.--The Administrator shall
promulgate such regulations as are necessary to ensure the
equitable issuance of allowances to--
``(A) facilities that use more than 1 energy source to
produce electricity; and
``(B) facilities that produce electricity in addition to
another service or product.
``(3) Report to congress on use of captured or recovered
mercury.--
``(A) In general.--Not later than 18 months after the date
of enactment of this title, the Administrator shall submit to
Congress a report on the public health and environmental
impacts from mercury that is or may be--
``(i) captured or recovered by air pollution control
technology; and
``(ii) incorporated into products such as soil amendments
and cement.
``(B) Required elements.--The report shall--
``(i) review--
``(I) technologies, in use as of the date of the report,
for incorporating mercury into products; and
``(II) potential technologies that might further minimize
the release of mercury; and
``(ii)(I) address the adequacy of legal authorities and
regulatory programs in effect as of the date of the report to
protect public health and the environment from mercury in
products described in subparagraph (A)(ii); and
``(II) to the extent necessary, make recommendations to
improve those authorities and programs.
``(b) New Unit Reserves.--
``(1) Establishment.--The Administrator shall establish by
regulation a reserve of nitrogen oxide allowances and a
reserve of mercury allowances to be set aside for use by new
units.
``(2) Determination of quantity.--The Administrator, in
consultation with the Secretary of Energy, shall determine,
based on projections of electricity output for new units--
``(A) not later than June 30, 2005, the quantity of
nitrogen oxide allowances and mercury allowances required to
be held in reserve for new units for each of calendar years
2009 through 2013; and
``(B) not later than June 30 of each fifth calendar year
thereafter, the quantity of nitrogen oxide allowances and
mercury allowances required to be held in reserve for new
units for the following 5-calendar year period.
``(c) Nitrogen Oxide and Mercury Allowance Allocations.--
``(1) Timing of allocations.--The Administrator shall
allocate nitrogen oxide allowances and mercury allowances to
affected units--
``(A) not later than December 31, 2005, for calendar year
2009; and
``(B) not later than December 31 of calendar year 2006 and
each calendar year thereafter, for the fourth calendar year
that begins after that December 31.
[[Page S5079]]
``(2) Allocations to affected units that are not new
units.--
``(A) Quantity of nitrogen oxide allowances allocated.--The
Administrator shall allocate to each affected unit that is
not a new unit a quantity of nitrogen oxide allowances that
is equal to the product obtained by multiplying--
``(i) 1.5 pounds of nitrogen oxides per megawatt hour; and
``(ii) the quotient obtained by dividing--
``(I) the average annual net quantity of electricity
generated by the affected unit during the most recent 3-
calendar year period for which data are available, measured
in megawatt hours; by
``(II) 2,000 pounds of nitrogen oxides per ton.
``(B) Quantity of mercury allowances allocated.--The
Administrator shall allocate to each affected unit that is
not a new unit a quantity of mercury allowances that is equal
to the product obtained by multiplying--
``(i) 0.0000227 pounds of mercury per megawatt hour; and
``(ii) the average annual net quantity of electricity
generated by the affected unit during the most recent 3-
calendar year period for which data are available, measured
in megawatt hours.
``(C) Adjustment of allocations.--
``(i) In general.--If, for any calendar year, the total
quantity of allowances allocated under subparagraph (A) or
(B) is not equal to the applicable quantity determined under
clause (ii), the Administrator shall adjust the quantity of
allowances allocated to affected units that are not new units
on a pro-rata basis so that the quantity is equal to the
applicable quantity determined under clause (ii).
``(ii) Applicable quantity.--The applicable quantity
referred to in clause (i) is the difference between--
``(I) the applicable annual tonnage limitation for
emissions from affected units specified in subsection (b) or
(c) of section 702 for the calendar year; and
``(II) the quantity of nitrogen oxide allowances or mercury
allowances, respectively, placed in the applicable new unit
reserve established under subsection (b) for the calendar
year.
``(3) Allocation to new units.--
``(A) Methodology.--The Administrator shall promulgate
regulations to establish a methodology for allocating
nitrogen oxide allowances and mercury allowances to new
units.
``(B) Quantity of nitrogen oxide allowances and mercury
allowances allocated.--The Administrator shall determine the
quantity of nitrogen oxide allowances and mercury allowances
to be allocated to each new unit based on the projected
emissions from the new unit.
``(4) Allowance not a property right.--A nitrogen oxide
allowance or mercury allowance--
``(A) is not a property right; and
``(B) may be terminated or limited by the Administrator.
``(5) No judicial review.--An allocation of nitrogen
allowances or mercury allowances by the Administrator under
this subsection shall not be subject to judicial review.
``(d) Nitrogen Oxide Allowance and Mercury Allowance
Transfer System.--
``(1) Use of allowances.--The regulations promulgated under
subsection (a)(1)(A) shall--
``(A) prohibit the use (but not the transfer in accordance
with paragraph (3)) of any nitrogen oxide allowance or
mercury allowance before the calendar year for which the
allowance is allocated;
``(B) provide that unused nitrogen oxide allowances and
mercury allowances may be carried forward and added to
nitrogen oxide allowances and mercury allowances,
respectively, allocated for subsequent years; and
``(C) provide that unused nitrogen oxide allowances and
mercury allowances may be transferred by--
``(i) the person to which the allowances are allocated; or
``(ii) any person to which the allowances are transferred.
``(2) Use by persons to which allowances are transferred.--
Any person to which nitrogen oxide allowances or mercury
allowances are transferred under paragraph (1)(C)--
``(A) may use the nitrogen oxide allowances or mercury
allowances in the calendar year for which the nitrogen oxide
allowances or mercury allowances were allocated, or in a
subsequent calendar year, to demonstrate compliance with
subsection (e)(1); or
``(B) may transfer the nitrogen oxide allowances or mercury
allowances to any other person for the purpose of
demonstration of that compliance.
``(3) Certification of transfer.--A transfer of a nitrogen
oxide allowance or mercury allowance shall not take effect
until a written certification of the transfer, authorized by
a responsible official of the person making the transfer, is
received and recorded by the Administrator.
``(4) Permit requirements.--An allocation or transfer of
nitrogen oxide allowances or mercury allowances to an
affected unit shall, after recording by the Administrator, be
considered to be part of the federally enforceable permit of
the affected unit under this Act, without a requirement for
any further review or revision of the permit.
``(e) Compliance and Enforcement.--
``(1) In general.--For calendar year 2009 and each calendar
year thereafter, the operator of each affected unit shall
surrender to the Administrator--
``(A) a quantity of nitrogen oxide allowances that is equal
to the total tons of nitrogen oxides emitted by the affected
unit during the calendar year; and
``(B) a quantity of mercury allowances that is equal to the
total pounds of mercury emitted by the affected unit during
the calendar year.
``(2) Monitoring system.--The Administrator shall
promulgate regulations requiring the accurate monitoring of
the quantities of nitrogen oxides and mercury that are
emitted at each affected unit.
``(3) Reporting.--
``(A) In general.--Not less often than quarterly, the owner
or operator of an affected unit shall submit to the
Administrator a report on the monitoring of emissions of
nitrogen oxides and mercury carried out by the owner or
operator in accordance with the regulations promulgated under
paragraph (2).
``(B) Authorization.--Each report submitted under
subparagraph (A) shall be authorized by a responsible
official of the affected unit, who shall certify the accuracy
of the report.
``(C) Public reporting.--The Administrator shall make
available to the public, through 1 or more published reports
and 1 or more forms of electronic media, data concerning the
emissions of nitrogen oxides and mercury from each affected
unit.
``(4) Excess emissions.--
``(A) In general.--The owner or operator of an affected
unit that emits nitrogen oxides or mercury in excess of the
nitrogen oxide allowances or mercury allowances that the
owner or operator holds for use for the affected unit for the
calendar year shall--
``(i) pay an excess emissions penalty determined under
subparagraph (B); and
``(ii) offset the excess emissions by an equal quantity in
the following calendar year or such other period as the
Administrator shall prescribe.
``(B) Determination of excess emissions penalty.--
``(i) Nitrogen oxides.--The excess emissions penalty for
nitrogen oxides shall be equal to the product obtained by
multiplying--
``(I) the number of tons of nitrogen oxides emitted in
excess of the total quantity of nitrogen oxide allowances
held; and
``(II) $5,000, adjusted (in accordance with regulations
promulgated by the Administrator) for changes in the Consumer
Price Index for All-Urban Consumers published by the
Department of Labor.
``(ii) Mercury.--The excess emissions penalty for mercury
shall be equal to the product obtained by multiplying--
``(I) the number of pounds of mercury emitted in excess of
the total quantity of mercury allowances held; and
``(II) $10,000, adjusted (in accordance with regulations
promulgated by the Administrator) for changes in the Consumer
Price Index for All-Urban Consumers published by the
Department of Labor.
``SEC. 704. CARBON DIOXIDE ALLOWANCE TRADING PROGRAM.
``(a) Regulations.--
``(1) In general.--Not later than January 1, 2005, the
Administrator shall promulgate regulations to establish a
carbon dioxide allowance trading program for covered units in
the United States.
``(2) Required elements.--Regulations promulgated under
paragraph (1) shall establish requirements for the carbon
dioxide allowance trading program under this section,
including requirements concerning--
``(A)(i) the generation, allocation, issuance, recording,
tracking, transfer, and use of carbon dioxide allowances; and
``(ii) the public availability of all information
concerning the activities described in clause (i) that is not
confidential;
``(B) compliance with subsection (f)(1);
``(C) the monitoring and reporting of emissions under
paragraphs (2) and (3) of subsection (f);
``(D) excess emission penalties under subsection (f)(4);
and
``(E) standards, guidelines, and procedures concerning the
generation, certification, and use of additional carbon
dioxide allowances made available under subsection (d).
``(b) New Unit Reserve.--
``(1) Establishment.--The Administrator shall establish by
regulation a reserve of carbon dioxide allowances to be set
aside for use by new units and new renewable energy units.
``(2) Determination of quantity.--The Administrator, in
consultation with the Secretary of Energy, shall determine,
based on projections of electricity output for new units and
new renewable energy units--
``(A) not later than June 30, 2005, the quantity of carbon
dioxide allowances required to be held in reserve for new
units and new renewable energy units for each of calendar
years 2009 through 2013; and
``(B) not later than June 30 of each fifth calendar year
thereafter, the quantity of carbon dioxide allowances
required to be held in reserve for new units and renewable
energy units for the following 5-calendar year period.
``(c) Carbon Dioxide Allowance Allocation.--
``(1) Timing of allocations.--The Administrator shall
allocate carbon dioxide allowances to covered units--
[[Page S5080]]
``(A) not later than December 31, 2005, for calendar year
2009; and
``(B) not later than December 31 of calendar year 2006 and
each calendar year thereafter, for the fourth calendar year
that begins after that December 31.
``(2) Allocations to covered units that are not new
units.--
``(A) In general.--The Administrator shall allocate to each
affected unit that is not a new unit, to each nuclear
generating unit with respect to incremental nuclear
generation, and to each renewable energy unit that is not a
new renewable energy unit, a quantity of carbon dioxide
allowances that is equal to the product obtained by
multiplying--
``(i) the quantity of carbon dioxide allowances available
for allocation under subparagraph (B); and
``(ii) the quotient obtained by dividing--
``(I) the average net quantity of electricity generated by
the unit in a calendar year during the most recent 3-calendar
year period for which data are available, measured in
megawatt hours; and
``(II) the total of the average net quantities described in
subclause (I) with respect to all such units.
``(B) Quantity to be allocated.--For each calendar year,
the quantity of carbon dioxide allowances allocated under
subparagraph (A) shall be equal to the difference between--
``(i) the annual tonnage limitation for emissions of carbon
dioxide from affected units specified in section 702(d) for
the calendar year; and
``(ii) the quantity of carbon dioxide allowances placed in
the new unit reserve established under subsection (b) for the
calendar year.
``(3) Allocation to new units and new renewable energy
units.--
``(A) Methodology.--The Administrator shall promulgate
regulations to establish a methodology for allocating carbon
dioxide allowances to new units and new renewable energy
units.
``(B) Quantity of carbon dioxide allowances allocated.--The
Administrator shall determine the quantity of carbon dioxide
allowances to be allocated to each new unit and each new
renewable energy unit based on the unit's projected share of
the total electric power generation attributable to covered
units.
``(d) Issuance and Use of Additional Carbon Dioxide
Allowances.--
``(1) In general.--
``(A) Allowances for projects certified by independent
review board.--In addition to carbon dioxide allowances
allocated under subsection (c), the Administrator shall make
carbon dioxide allowances available to projects that are
certified, in accordance with paragraph (3), by the
independent review board established under paragraph (2) as
eligible to receive the carbon dioxide allowances.
``(B) Allowances obtained under other programs.--The
regulations promulgated under subsection (a)(1) shall--
``(i) allow covered units to comply with subsection (f)(1)
by purchasing and using carbon dioxide allowances that are
traded under any other United States or internationally
recognized carbon dioxide reduction program that is specified
under clause (ii);
``(ii) specify, for the purpose of clause (i), programs
that meet the goals of this section; and
``(iii) apply such conditions to the use of carbon dioxide
allowances traded under programs specified under clause (ii)
as are necessary to achieve the goals of this section.
``(2) Independent review board.--
``(A) In general.--
``(i) Establishment.--The Administrator shall establish an
independent review board to assist the Administrator in
certifying projects as eligible for carbon dioxide allowances
made available under paragraph (1)(A).
``(ii) Review and approval.--Each certification by the
independent review board of a project shall be subject to the
review and approval of the Administrator.
``(iii) Requirements.--Subject to this subsection,
requirements relating to the creation, composition, duties,
responsibilities, and other aspects of the independent review
board shall be included in the regulations promulgated by the
Administrator under subsection (a).
``(B) Membership.--The independent review board shall be
composed of 12 members, of whom--
``(i) 10 members shall be appointed by the Administrator,
of whom--
``(I) 1 member shall represent the Environmental Protection
Agency (who shall serve as chairperson of the independent
review board);
``(II) 3 members shall represent State governments;
``(III) 3 members shall represent the electric generating
sector; and
``(IV) 3 members shall represent environmental
organizations;
``(ii) 1 member shall be appointed by the Secretary of
Energy to represent the Department of Energy; and
``(iii) 1 member shall be appointed by the Secretary of
Agriculture to represent the Department of Agriculture.
``(C) Staff and other resources.--The Administrator shall
provide such staff and other resources to the independent
review board as the Administrator determines to be necessary.
``(D) Development of guidelines.--
``(i) In general.--The independent review board shall
develop guidelines for certifying projects in accordance with
paragraph (3), including--
``(I) criteria that address the validity of claims that
projects result in the generation of carbon dioxide
allowances;
``(II) guidelines for certifying incremental carbon
sequestration in accordance with clause (ii); and
``(III) guidelines for certifying geological sequestration
of carbon dioxide in accordance with clause (iii).
``(ii) Guidelines for certifying incremental carbon
sequestration.--The guidelines for certifying incremental
carbon sequestration in forests, agricultural soil,
rangeland, or grassland shall include development, reporting,
monitoring, and verification guidelines, to be used in
quantifying net carbon sequestration from land use projects,
that are based on--
``(I) measurement of increases in carbon storage in excess
of the carbon storage that would have occurred in the absence
of such a project;
``(II) comprehensive carbon accounting that--
``(aa) reflects net increases in carbon reservoirs; and
``(bb) takes into account any carbon emissions resulting
from disturbance of carbon reservoirs in existence as of the
date of commencement of the project;
``(III) adjustments to account for--
``(aa) emissions of carbon that may result at other
locations as a result of the impact of the project on timber
supplies; or
``(bb) potential displacement of carbon emissions to other
land owned by the entity that carries out the project; and
``(IV) adjustments to reflect the expected carbon storage
over various time periods, taking into account the likely
duration of the storage of the carbon stored in a carbon
reservoir.
``(iii) Guidelines for certifying geological sequestration
of carbon dioxide.--The guidelines for certifying geological
sequestration of carbon dioxide produced by a covered unit
shall--
``(I) provide that a project shall be certified only to the
extent that the geological sequestration of carbon dioxide
produced by a covered unit is in addition to any carbon
dioxide used by the covered unit in 2009 for enhanced oil
recovery; and
``(II) include requirements for development, reporting,
monitoring, and verification for quantifying net carbon
sequestration--
``(aa) to ensure the permanence of the sequestration; and
``(bb) to ensure that the sequestration will not cause or
contribute to significant adverse effects on the environment.
``(iv) Deadlines for development.--The guidelines under
clause (i) shall be developed--
``(I) with respect to projects described in paragraph
(3)(A), not later than January 1, 2005; and
``(II) with respect to projects described in paragraph
(3)(B), not later than January 1, 2006.
``(v) Updating of guidelines.--The independent review board
shall periodically update the guidelines as the independent
review board determines to be appropriate.
``(E) Certification of projects.--
``(i) In general.--Subject to clause (ii), subparagraph
(A)(ii), and paragraph (3), the independent review board
shall certify projects as eligible for additional carbon
dioxide allowances.
``(ii) Limitation.--The independent review board shall not
certify a project under this subsection if the carbon dioxide
emission reductions achieved by the project will be used to
satisfy any requirement imposed on any foreign country or any
industrial sector to reduce the quantity of greenhouse gases
emitted by the foreign country or industrial sector.
``(3) Projects eligible for additional carbon dioxide
allowances.--
``(A) Projects carried out in calendar years 1990 through
2008.--
``(i) In general.--The independent review board may certify
as eligible for carbon dioxide allowances a project that--
``(I) is carried out on or after January 1, 1990, and
before January 1, 2009; and
``(II) consists of--
``(aa) a carbon sequestration project carried out in the
United States or a foreign country;
``(bb) a project reported under section 1605(b) of the
Energy Policy Act of 1992 (42 U.S.C. 13385(b)); or
``(cc) any other project to reduce emissions of greenhouse
gases that is carried out in the United States or a foreign
country.
``(ii) Maximum quantity of additional carbon dioxide
allowances.--The Administrator may make available to projects
certified under clause (i) a quantity of allowances that is
not greater than 10 percent of the tonnage limitation for
calendar year 2009 for emissions of carbon dioxide from
affected units specified in section 702(d)(1).
``(iii) Use of allowances.--Allowances made available under
clause (ii) may be used to comply with subsection (f)(1) in
calendar year 2009 or any calendar year thereafter.
``(B) Projects carried out in calendar year 2009 and
thereafter.--The independent review board may certify as
eligible for carbon dioxide allowances a project that--
``(i) is carried out on or after January 1, 2009; and
``(ii) consists of--
[[Page S5081]]
``(I) a carbon sequestration project carried out in the
United States or a foreign country; or
``(II) a project to reduce the greenhouse gas emissions (on
a carbon dioxide equivalency basis determined by the
independent review board) of a source of greenhouse gases
that is not an affected unit.
``(e) Carbon Dioxide Allowance Transfer System.--
``(1) Use of allowances.--The regulations promulgated under
subsection (a)(1) shall--
``(A) prohibit the use (but not the transfer in accordance
with paragraph (3)) of any carbon dioxide allowance before
the calendar year for which the carbon dioxide allowance is
allocated;
``(B) provide that unused carbon dioxide allowances may be
carried forward and added to carbon dioxide allowances
allocated for subsequent years;
``(C) provide that unused carbon dioxide allowances may be
transferred by--
``(i) the person to which the carbon dioxide allowances are
allocated; or
``(ii) any person to which the carbon dioxide allowances
are transferred; and
``(D) provide that carbon dioxide allowances allocated and
transferred under this section may be transferred into any
other market-based carbon dioxide emission trading program
that is--
``(i) approved by the President; and
``(ii) implemented in accordance with regulations developed
by the Administrator or the head of any other Federal agency.
``(2) Use by persons to which carbon dioxide allowances are
transferred.--Any person to which carbon dioxide allowances
are transferred under paragraph (1)(C)--
``(A) may use the carbon dioxide allowances in the calendar
year for which the carbon dioxide allowances were allocated,
or in a subsequent calendar year, to demonstrate compliance
with subsection (f)(1); or
``(B) may transfer the carbon dioxide allowances to any
other person for the purpose of demonstration of that
compliance.
``(3) Certification of transfer.--A transfer of a carbon
dioxide allowance shall not take effect until a written
certification of the transfer, authorized by a responsible
official of the person making the transfer, is received and
recorded by the Administrator.
``(4) Permit requirements.--An allocation or transfer of
carbon dioxide allowances to a covered unit, or for a project
carried out on behalf of a covered unit, under subsection (c)
or (d) shall, after recording by the Administrator, be
considered to be part of the federally enforceable permit of
the covered unit under this Act, without a requirement for
any further review or revision of the permit.
``(f) Compliance and Enforcement.--
``(1) In general.--For calendar year 2009 and each calendar
year thereafter--
``(A) the operator of each affected unit and each renewable
energy unit shall surrender to the Administrator a quantity
of carbon dioxide allowances that is equal to the total tons
of carbon dioxide emitted by the affected unit or renewable
energy unit during the calendar year; and
``(B) the operator of each nuclear generating unit that has
incremental nuclear generation shall surrender to the
Administrator a quantity of carbon dioxide allowances that is
equal to the total tons of carbon dioxide emitted by the
nuclear generating unit during the calendar year from
incremental nuclear generation.
``(2) Monitoring system.--The Administrator shall
promulgate regulations requiring the accurate monitoring of
the quantity of carbon dioxide that is emitted at each
covered unit.
``(3) Reporting.--
``(A) In general.--Not less often than quarterly, the owner
or operator of a covered unit, or a person that carries out a
project certified under subsection (d) on behalf of a covered
unit, shall submit to the Administrator a report on the
monitoring of carbon dioxide emissions carried out at the
covered unit in accordance with the regulations promulgated
under paragraph (2).
``(B) Authorization.--Each report submitted under
subparagraph (A) shall be authorized by a responsible
official of the covered unit, who shall certify the accuracy
of the report.
``(C) Public reporting.--The Administrator shall make
available to the public, through 1 or more published reports
and 1 or more forms of electronic media, data concerning the
emissions of carbon dioxide from each covered unit.
``(4) Excess emissions.--
``(A) In general.--The owner or operator of a covered unit
that emits carbon dioxide in excess of the carbon dioxide
allowances that the owner or operator holds for use for the
covered unit for the calendar year shall--
``(i) pay an excess emissions penalty determined under
subparagraph (B); and
``(ii) offset the excess emissions by an equal quantity in
the following calendar year or such other period as the
Administrator shall prescribe.
``(B) Determination of excess emissions penalty.--The
excess emissions penalty shall be equal to the product
obtained by multiplying--
``(i) the number of tons of carbon dioxide emitted in
excess of the total quantity of carbon dioxide allowances
held; and
``(ii) $100, adjusted (in accordance with regulations
promulgated by the Administrator) for changes in the Consumer
Price Index for All-Urban Consumers published by the
Department of Labor.
``(g) Allowance Not a Property Right.--A carbon dioxide
allowance--
``(1) is not a property right; and
``(2) may be terminated or limited by the Administrator.
``(h) No Judicial Review.--An allocation of carbon dioxide
allowances by the Administrator under subsection (c) or (d)
shall not be subject to judicial review.''.
SEC. 4. NEW SOURCE REVIEW PROGRAM.
Section 165 of the Clean Air Act (42 U.S.C. 7475) is
amended by adding at the end the following:
``(f) Revisions to New Source Review Program.--
``(1) Definitions.--In this subsection:
``(A) Covered unit.--The term `covered unit' has the
meaning given the term in section 701.
``(B) New source review program.--The term `new source
review program' means the program to carry out section 111
and this part.
``(2) Regulations.--In accordance with this subsection, the
Administrator shall promulgate regulations revising the new
source review program.
``(3) Applicability criteria.--Beginning January 1, 2009,
the new source review program shall apply only to--
``(A) construction of a new covered unit (which
construction shall include the replacement of an existing
boiler); and
``(B) an activity that results in any increase in the
maximum hourly rate of emissions from a covered unit of air
pollutants regulated under the new source review program
(measured in pounds per megawatt hour), after netting among
covered units at a source.
``(4) Performance standards.--Beginning in 2020, each
affected unit (as defined in section 701(1)(B)) on which
construction commenced before August 17, 1971, shall meet
performance standards of--
``(A) 4.5 lbs/MWh for sulfur dioxide; and
``(B) 2.5 lbs/MWh for nitrogen oxides.
``(5) Biennial identification of best available control
technologies and lowest achievable emission rates.--
Notwithstanding the definitions of `best available control
technology' under section 169 and `lowest achievable emission
rate' under section 171, the Administrator shall identify the
best available control technologies and lowest achievable
emission rates, on a biennial basis, as those rates and
technologies apply to covered units.
``(6) Revision of lowest achievable emission rate with
respect to considered costs.--
``(A) In general.--Notwithstanding the definition of
`lowest achievable emission rate' under section 171, with
respect to technology required to be installed by the
electric generating sector, costs may be considered in the
determination of the lowest achievable emission rate, so
that, beginning January 1, 2009, a covered unit (as defined
in section 701) shall not be required to install technology
required to meet a lowest achievable emission rate if the
cost of the technology exceeds the maximum amount determined
under subparagraph (B).
``(B) Maximum amount of cost.--The maximum amount referred
to in subparagraph (A) shall be an amount (in dollars per
ton) that--
``(i) is determined by the Administrator; but
``(ii) does not exceed an amount equal to twice the amount
of the applicable cost guideline for best available control
technology.
``(7) Emission offsets.--No source within the electric
generating sector that locates in a nonattainment area after
December 31, 2008, shall be required to obtain offsets for
emissions of air pollutants.
``(8) Adverse local air quality impacts.--The regulations
shall require each State--
``(A) to identify areas in the State that adversely affect
local air quality; and
``(B) to impose such facility-specific and other measures
as are necessary to remedy the adverse effects in accordance
with the national pollutant tonnage limitations under section
702.
``(9) No effect on other requirements.--Nothing in this
subsection affects the obligation of any State or local
government to comply with the requirements established under
this section concerning--
``(A) national ambient air quality standards;
``(B) maximum allowable air pollutant increases or maximum
allowable air pollutant concentrations; or
``(C) protection of visibility and other air quality-
related values in areas designated as class I areas under
part C of title I.''.
SEC. 5. REVISIONS TO SULFUR DIOXIDE ALLOWANCE PROGRAM.
(a) In General.--Title IV of the Clean Air Act (relating to
acid deposition control) (42 U.S.C. 7651 et seq.) is amended
by adding at the end the following:
``SEC. 417. REVISIONS TO SULFUR DIOXIDE ALLOWANCE PROGRAM.
``(a) Definitions.--In this section, the terms `affected
unit' and `new unit' have the meanings given the terms in
section 701.
``(b) Regulations.--Not later than January 1, 2004, the
Administrator shall promulgate such revisions to the
regulations to implement this title as the Administrator
determines to be necessary to implement section 702(a).
``(c) New Unit Reserve.--
[[Page S5082]]
``(1) Establishment.--Subject to the annual tonnage
limitation for emissions of sulfur dioxide from affected
units specified in section 702(a), the Administrator shall
establish by regulation a reserve of allowances to be set
aside for use by new units.
``(2) Determination of quantity.--The Administrator, in
consultation with the Secretary of Energy, shall determine,
based on projections of electricity output for new units--
``(A) not later than June 30, 2005, the quantity of
allowances required to be held in reserve for new units for
each of calendar years 2009 through 2013; and
``(B) not later than June 30 of each fifth calendar year
thereafter, the quantity of allowances required to be held in
reserve for new units for the following 5-calendar year
period.
``(3) Allocation.--
``(A) Regulations.--The Administrator shall promulgate
regulations to establish a methodology for allocating
allowances to new units.
``(B) No judicial review.--An allocation of allowances by
the Administrator under this subsection shall not be subject
to judicial review.
``(d) Existing Units.--
``(1) Allocation.--
``(A) Regulations.--Subject to the annual tonnage
limitation for emissions of sulfur dioxide from affected
units specified in section 702(a), and subject to the reserve
of allowances for new units under subsection (c), the
Administrator shall promulgate regulations to govern the
allocation of allowances to affected units that are not new
units.
``(B) Required elements.--The regulations shall provide
for--
``(i) the allocation of allowances on a fair and equitable
basis between affected units that received allowances under
section 405 and affected units that are not new units and
that did not receive allowances under that section, using for
both categories of units the same or similar allocation
methodology as was used under section 405; and
``(ii) the pro-rata distribution of allowances to all units
described in clause (i), subject to the annual tonnage
limitation for emissions of sulfur dioxide from affected
units specified in section 702(a).
``(2) Timing of allocations.--The Administrator shall
allocate allowances to affected units--
``(A) not later than December 31, 2005, for calendar year
2009; and
``(B) not later than December 31 of calendar year 2006 and
each calendar year thereafter, for the fourth calendar year
that begins after that December 31.
``(3) No judicial review.--An allocation of allowances by
the Administrator under this subsection shall not be subject
to judicial review.
``(e) Western Regional Air Partnership.--
``(1) Definitions.--In this subsection:
``(A) Covered state.--The term `covered State' means each
of the States of Arizona, California, Colorado, Idaho,
Nevada, New Mexico, Oregon, Utah, and Wyoming.
``(B) Covered year.--The term `covered year' means--
``(i)(I)(aa) the third calendar year after the first
calendar year in which the Administrator determines by
regulation that the total of the annual emissions of sulfur
dioxide from all affected units in the covered States is
projected to exceed 271,000 tons in calendar year 2018 or any
calendar year thereafter; but
``(bb) not earlier than calendar year 2016; or
``(II) if the Administrator does not make the determination
described in subclause (I)(aa)--
``(aa) the third calendar year after the first calendar
year with respect to which the total of the annual emissions
of sulfur dioxide from all affected units in the covered
States first exceeds 271,000 tons; but
``(bb) not earlier than calendar year 2021; and
``(ii) each calendar year after the calendar year
determined under clause (i).
``(2) Maximum emissions of sulfur dioxide from each
affected unit.--In each covered year, the emissions of sulfur
dioxide from each affected unit in a covered State shall not
exceed the number of allowances that are allocated under
paragraph (3) and held by the affected unit for the covered
year.
``(3) Allocation of allowances.--
``(A) In general.--Not later than January 1, 2013, the
Administrator shall promulgate regulations to establish--
``(i) a methodology for allocating allowances to affected
units in covered States under this subsection; and
``(ii) the timing of the allocations.
``(B) No judicial review.--An allocation of allowances by
the Administrator under this paragraph shall not be subject
to judicial review.''.
(b) Definition of Allowance.--Section 402 of the Clean Air
Act (relating to acid deposition control) (42 U.S.C. 7651a)
is amended by striking paragraph (3) and inserting the
following:
``(3) Allowance.--The term `allowance' means an
authorization, allocated by the Administrator to an affected
unit under this title, to emit, during or after a specified
calendar year, a quantity of sulfur dioxide determined by the
Administrator and specified in the regulations promulgated
under section 417(b).''.
(c) Technical Amendments.--
(1) Title IV of the Clean Air Act (relating to noise
pollution) (42 U.S.C. 7641 et seq.)--
(A) is amended by redesignating sections 401 through 403 as
sections 801 through 803, respectively; and
(B) is redesignated as title VIII and moved to appear at
the end of that Act.
(2) The table of contents for title IV of the Clean Air Act
(relating to acid deposition control) (42 U.S.C. prec. 7651)
is amended by adding at the end the following:
``Sec. 417. Revisions to sulfur dioxide allowance program.''.
SEC. 6. AIR QUALITY FORECASTS AND WARNINGS.
(a) Requirement for Forecasts and Warnings.--The Secretary
of Commerce, acting through the Administrator of the National
Oceanic and Atmospheric Administration, in cooperation with
the Administrator of the Environmental Protection Agency,
shall issue air quality forecasts and air quality warnings as
part of the mission of the Department of Commerce.
(b) Regional Warnings.--In carrying out subsection (a), the
Secretary of Commerce shall establish within the National
Oceanic and Atmospheric Administration a program to provide
region-oriented forecasts and warnings regarding air quality
for each of the following regions of the United States:
(1) The Northeast, composed of Connecticut, Maine,
Massachusetts, New Hampshire, New York, Rhode Island, and
Vermont.
(2) The Mid-Atlantic, composed of Delaware, the District of
Columbia, Maryland, New Jersey, Pennsylvania, Virginia, and
West Virginia.
(3) The Southeast, composed of Alabama, Florida, Georgia,
North Carolina, and South Carolina.
(4) The South, composed of Arkansas, Louisiana,
Mississippi, Oklahoma, Tennessee, and Texas.
(5) The Midwest, composed of Illinois, Indiana, Iowa,
Kentucky, Michigan, Minnesota, Missouri, Ohio, and Wisconsin.
(6) The High Plains, composed of Kansas, Nebraska, North
Dakota, and South Dakota.
(7) The Northwest, composed of Idaho, Montana, Oregon,
Washington, and Wyoming.
(8) The Southwest, composed of Arizona, California,
Colorado, New Mexico, Nevada, and Utah.
(9) Alaska.
(10) Hawaii.
(c) Priority Area.--In establishing the program described
in subsection (a), the Secretary of Commerce and the
Administrator shall identify and expand, to the maximum
extent practicable, Federal air quality forecast and warning
programs in effect as of the date of establishment of the
program.
(d) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out
this section.
SEC. 7. RELATIONSHIP TO OTHER LAW.
(a) Exemption From Hazardous Air Pollutant Requirements
Relating to Mercury.--Section 112 of the Clean Air Act (42
U.S.C. 7412) is amended--
(1) in subsection (f), by adding at the end the following:
``(7) Mercury emitted from certain affected units.--Not
later than 8 years after the date of enactment of this
paragraph, the Administrator shall carry out the duties of
the Administrator under this subsection with respect to
mercury emitted from affected units (as defined in section
701).''; and
(2) in subsection (n)(1)(A)--
(A) by striking ``(A) The Administrator'' and inserting the
following:
``(A) Study, report, and regulations.--
``(i) Study and report to congress.--The Administrator'';
(B) by striking ``The Administrator'' in the fourth
sentence and inserting the following:
``(ii) Regulations.--
``(I) In general.--The Administrator''; and
(C) in clause (ii) (as designated by subparagraph (B)), by
adding at the end the following:
``(II) Exemption for certain affected units relating to
mercury.--An affected unit (as defined in section 701) that
would otherwise be subject to mercury emission standards
under subclause (I) shall not be subject to mercury emission
standards under subclause (I) or subsection (c).''.
(b) Temporary Exemption From Visibility Protection
Requirements.--Section 169A(c) of the Clean Air Act (42
U.S.C. 7491(c)) is amended--
(1) in paragraph (3), by striking ``this subsection'' and
inserting ``paragraph (1)''; and
(2) by adding at the end the following:
``(4) Temporary exemption for certain affected units.--An
affected unit (as defined in section 701) shall not be
subject to subsection (b)(2)(A) during the period--
``(A) beginning on the date of enactment of this paragraph;
and
``(B) ending on the date that is 20 years after the date of
enactment of this paragraph.''.
(c) No Effect on Other Federal and State Requirements.--
Except as otherwise specifically provided in this Act,
nothing in this Act or an amendment made by this Act--
(1) affects any permitting, monitoring, or enforcement
obligation of the Administrator of the Environmental
Protection Agency under the Clean Air Act (42 U.S.C. 7401 et
seq.) or any remedy provided under that Act;
(2) affects any requirement applicable to, or liability of,
an electric generating facility under that Act;
[[Page S5083]]
(3) requires a change in, affects, or limits any State law
that regulates electric utility rates or charges, including
prudency review under State law; or
(4) precludes a State or political subdivision of a State
from adopting and enforcing any requirement for the control
or abatement of air pollution, except that a State or
political subdivision may not adopt or enforce any emission
standard or limitation that is less stringent than the
requirements imposed under that Act.
Mr. CHAFEE. Mr. President, I am pleased to join with Senator Carper
today to introduce the Clean Air Planning Act of 2003. Congress needs
to advance four-pollutant legislation that offers the best chance for
broad bipartisan support, and I believe this bill meets that test. The
testimony received through hearings in the Environment and Public Works
Committee over the past several years has clearly outlined the need for
controlling the major emissions from power plants--sulfur dioxide,
nitrogen oxide, mercury and carbon dioxide--while at the same time
recognizing the added costs of these new controls. We know through
experience that we will only be successful at passing legislation if we
find middle ground.
The parameters of this debate have been established. Some will say
this bill doesn't go far enough in some respects. Others will say the
legislation goes too far, especially as it pertains to the mandatory
control of carbon dioxide emissions. However, the relationship of
fossil fuels to global warming is clear and scientifically validated.
The ``U.S. Climate Action Report 2002'' released by the administration
last May tells us we need to take real actions to address the problem.
The longer we wait, the harder this problem will be to solve. The Rio
Convention is a perfect example of why waiting is not reasonable. In
1992, we agreed to voluntarily reduce harmful emissions to 1990 levels.
It didn't happen. Now, in 2003 we are told that reductions to 1990
levels will stall the economy. If we wait much longer before taking any
action, imagine how much harder it will be to achieve real reductions
without harming the economy.
The legislation we are introducing today would achieve significant
reductions in a more cost effective way than other proposals. For
sulfur dioxide, nitrogen oxide, and mercury, we will establish
emissions caps that are superior to reductions that will be achieved
under the existing Clean Air Act. In addition, for the first time, we
will ensure real reductions of carbon dioxide emissions are achieved.
By 2013, the utility sector will be required to reduce carbon dioxide
emissions to 2001 levels. This proposal will allow the United States to
address carbon pollution for the first time and, when compared to a
three-pollutant bill, at very small incremental costs.
I believe that the Carper-Chafee bill offers a real opportunity to
break the stalemate that exists today and begin an honest debate that
will eventually lead to enactment of strong legislation. I look forward
to working with all of my colleagues as we move forward to pass a bill
that enjoys the broadest support and adequately addresses the serious
health, environmental, and economic issues facing the Nation.
______