[Congressional Record Volume 152, Number 109 (Thursday, September 7, 2006)]
[Senate]
[Pages S9129-S9131]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. INHOFE:
  S. 3868. A bill to amend the Clean Air Act to encourage the most 
polluted areas in the United States to attain clean air standards; to 
the Committee on Environment and Public Works.
  Mr. INHOFE. Mr. President, I ask unanimous consent that the Clean Air 
Attainment Enforcement Act be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 3868

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Clean Air Attainment 
     Enforcement Act''.

     SEC. 2. IMPOSITION OF SANCTIONS.

       Section 179 of the Clean Air Act (42 U.S.C. 7509) is 
     amended--
       (1) in subsection (a), by striking ``For any 
     implementation'' and inserting ``Except as provided in 
     subsection (e), for any implementation''; and
       (2) by adding at the end the following:
       ``(e) Sanctions for Covered Areas.--
       ``(1) Definition of covered area.--In this subsection, the 
     term `covered area' means any area that is classified as--
       ``(A) a PM2.5 nonattainment area under--
       ``(i) the final rule entitled `Air Quality Designations and 
     Classifications for the Fine Particles (PM2.5) 
     National Ambient Air Quality Standards' (70 Fed. Reg. 944 
     (January 5, 2005)); or
       ``(ii) any final nonattainment designation promulgated 
     pursuant to the final version of the proposed rule entitled 
     `National Ambient Air Quality Standards for Particulate 
     Matter, Part II' (71 Fed. Reg. 2620 (January 17, 2006)); and
       ``(B) a Serious, Severe, or Extreme Area for ozone 
     nonattainment under the final rule entitled `Air Quality 
     Designations and Classifications for the 8-Hour Ozone 
     National Ambient Air Quality Standards; Early Action Compact 
     Areas With Deferred Effective Dates' (69 Fed. Reg. 23858 
     (April 30, 2004)).
       ``(2) Sanctions applicable to covered areas.--If a State in 
     which a covered area is located does not submit an 
     implementation plan in accordance with, or otherwise fails to 
     comply with, subsection (a)--
       ``(A) the Administrator shall not have the discretion to 
     select whether sanctions under paragraph (1) or (2) of 
     subsection (b) will be imposed on the covered area; and
       ``(B) the Administrator shall impose on the covered area 
     the highway and emission offset sanctions described in 
     paragraphs (1) and (2),

[[Page S9130]]

     respectively, of subsection (b), except that, with respect to 
     the emission offset requirements described in subsection 
     (b)(2), the ratio of emission reductions to increased 
     emissions applicable to the covered area shall be 5 to 1.''.

     SEC. 3. ENFORCEMENT FOR SELECT AREAS FOR FAILURE TO ATTAIN.

       (a) Ozone.--Section 185 of the Clean Air Act (42 U.S.C. 
     7511d) is amended--
       (1) by striking the section designation and heading and 
     inserting the following:

     ``SEC. 185. ENFORCEMENT FOR SELECT AREAS FOR FAILURE TO 
                   ATTAIN.'';

       (2) in the first sentence of subsection (a), by striking 
     ``Each implementation'' and inserting ``Except as provided in 
     subsection (f), each implementation''; and
       (3) by adding at the end the following:
       ``(f) Ozone Attainment in Covered Areas.--
       ``(1) Definitions.--In this subsection:
       ``(A) Attainment year.--The term `attainment year', with 
     respect to a covered area, means the calendar year during 
     which the covered area is required to attain the standard for 
     ozone described in the final rule.
       ``(B) Baseline quantity.--The term `baseline quantity' 
     means, for any attainment year, the lesser of--
       ``(i) the quantity of actual VOC or NOX  
     emissions of a stationary source; or
       ``(ii)(I) the quantity of VOC or NOX emissions 
     allowed under a permit applicable to a stationary source; or
       ``(II) if no such permit has been issued for the attainment 
     year, the quantity of those emissions allowed under the 
     applicable State implementation plan during the attainment 
     year.
       ``(C) Covered area.--The term `covered area' has the 
     meaning given the term in section 179(e).
       ``(D) Final rule.--The term `final rule' means the final 
     rule entitled `Air Quality Designations and Classifications 
     for the 8-Hour Ozone National Ambient Air Quality Standards; 
     Early Action Compact Areas With Deferred Effective Dates' (69 
     Fed. Reg. 23858 (April 30, 2004)).
       ``(2) Implementation plan revision.--
       ``(A) In general.--Each implementation plan revision 
     required under subsection (c), (d), or (e) of section 182 
     (relating to the attainment plans for Serious, Severe, and 
     Extreme Areas, respectively) shall--
       ``(i) provide that, if the area to which the plan revision 
     applies is a covered area, each major stationary source that 
     emits VOCs or NOx and that is located in the 
     covered area shall pay to the Administrator a fee in an 
     amount calculated under subparagraph (B) as a penalty for the 
     failure to attain the standard for ozone by the applicable 
     attainment date specified in the final rule; and
       ``(ii) include procedures for the assessment and collection 
     of those fees.
       ``(B) Amount of fee.--The amount of a fee paid under this 
     subsection for each ton of VOCs or NOX emitted by 
     a major stationary source in a covered area in nonattainment 
     during a calendar year in excess of 70 percent of the 
     baseline quantity shall be (based on classifications of 
     Serious, Severe, and Extreme Areas in effect as of December 
     31, 2006, and as adjusted annually in accordance with section 
     502(b)(3)(B)(v)) (relating to inflation adjustment)--
       ``(i) with respect to a ton of VOCs--

       ``(I) in a Serious Area, $10,000;
       ``(II) in a Severe Area, $20,000; and
       ``(III) in an Extreme Area, $30,000; and

       ``(ii) with respect to a ton of NOx, $5,000, 
     regardless of whether the NOX is emitted in a 
     Serious, Severe, or Extreme Area.
       ``(3) Penalties for failure to make progress toward 
     attainment in covered areas.--
       ``(A) In general.--Upon approval of a State implementation 
     plan that covers a covered area, and annually thereafter 
     until the applicable deadline by which the covered area is 
     required to achieve attainment, as specified in section 
     181(a) and as updated by the final rule, the Administrator 
     shall determine, in accordance with subparagraph (B), whether 
     the covered area is making progress that is sufficient to 
     enable the covered area to achieve attainment by that 
     deadline.
       ``(B) Determination of progress.--The Administrator shall 
     not determine under subparagraph (A) that a covered area is 
     making sufficient progress toward achieving attainment for 
     any calendar year unless the Administrator determines, at a 
     minimum, that the covered area has achieved a reduction in 
     the aggregate quantity of VOCs or NOX emitted in 
     the covered area for the calendar year that is equal to or 
     greater than the product obtained by multiplying--
       ``(i) the aggregate quantity, in tons, of the VOC or 
     NOX emission reductions, respectively, that are 
     required, during the period beginning on the date of the 
     determination by the Administrator and ending on the 
     applicable date referred to in subparagraph (A), to achieve 
     attainment; by
       ``(ii) the quotient obtained by dividing--

       ``(I) the number of months, rounded to the nearest month, 
     between the date of submission of the State implementation 
     plan applicable to the covered area and the date of the 
     determination by the Administrator; by
       ``(II) the number of months, rounded to the nearest month, 
     between the date of submission of that State implementation 
     plan and the applicable attainment date referred to in 
     subparagraph (A).

       ``(C) Imposition of penalties.--If the Administrator 
     determines under this paragraph that a covered area is not 
     making sufficient progress to enable the covered area to 
     achieve attainment by the applicable deadline referred to in 
     subparagraph (A), the Administrator shall--
       ``(i) for the first calendar year for which the 
     determination is made, impose on each major stationary source 
     located in the covered area a penalty in an amount that is 
     equal to 10 percent of the amount of the fee that, based on 
     whether the major stationary source is located in a Serious, 
     Severe, or Extreme Area, would be paid by the major 
     stationary source under paragraph (2)(B) for failure to meet 
     a national primary ambient air quality standard for ozone by 
     the deadline referred to in subparagraph (A); and
       ``(ii) for each subsequent calendar year until the deadline 
     referred to in subparagraph (A)--

       ``(I) reevaluate the progress being made by the covered 
     area toward achieving attainment by the deadline referred to 
     in subparagraph (A); and
       ``(II) if the Administrator determines that the covered 
     area is not making sufficient progress, impose on each major 
     stationary source located in the covered area a penalty in an 
     amount that is equal to the sum of the penalty imposed on the 
     same class (with respect to location in a Serious, Severe, or 
     Extreme Area) of major stationary source under clause (i) and 
     the product obtained by multiplying--

       ``(aa) 5 percent of the fee that, based on whether the 
     major stationary source is located in a Serious, Severe, or 
     Extreme Area, would be paid by the major stationary source 
     under paragraph (2)(B) for failure to meet a national primary 
     ambient air quality standard for ozone by the deadline 
     referred to in subparagraph (A); and
       ``(bb) the number of calendar years for which the covered 
     area has been previously determined not to have made 
     sufficient progress under this paragraph as of the date of 
     the determination by the Administrator (excluding the 
     determination for the current calendar year).
       ``(D) Suspension of penalties.--If the Administrator 
     determines under this paragraph that a covered area that was 
     determined not to be making sufficient progress toward 
     attainment under this paragraph for a preceding calendar year 
     is making sufficient progress toward attainment for the 
     current calendar year, the Administrator shall suspend the 
     imposition of penalties on major stationary sources located 
     in the covered area for the current calendar year.''.
       (b) Particulate Matter.--Section 188 of the Clean Air Act 
     (42 U.S.C. 7513) is amended by adding at the end the 
     following:
       ``(g) Particulate Matter Attainment in Covered Areas.--
       ``(1) Definitions.--In this subsection:
       ``(A) Attainment year.--The term `attainment year', with 
     respect to a covered area, means the calendar year during 
     which the covered area is required to attain the standard for 
     PM2.5 described in the final rules.
       ``(B) Baseline quantity.--The term `baseline quantity' 
     means, for any attainment year, the lesser of--
       ``(i) the quantity of actual PM2.5 emissions of 
     a stationary source; or
       ``(ii)(I) the quantity of PM2.5 emissions 
     allowed under a permit applicable to a stationary source; or
       ``(II) if no such permit has been issued for the attainment 
     year, the quantity of those emissions allowed under the 
     applicable State implementation plan during the attainment 
     year.
       ``(C) Covered area.--The term `covered area' has the 
     meaning given the term in section 179(e).
       ``(D) Final rules.--The term `final rules' means--
       ``(i) the final rule entitled `Air Quality Designations and 
     Classifications for the Fine Particles (PM2.5) National 
     Ambient Air Quality Standards' (70 Fed. Reg. 944 (January 5, 
     2005)); and
       ``(ii) the final version of the proposed rule entitled 
     `National Ambient Air Quality Standards for Particulate 
     Matter, Part II' (71 Fed. Reg. 2620 (January 17, 2006)).
       ``(E) PM2.5.--The term `PM2.5' means 
     particulate matter the aerodynamic diameter of which is less 
     than or equal to 2.5 micrometers.
       ``(2) Implementation plan revision.--
       ``(A) In general.--Each implementation plan revision 
     required under section 110 shall--
       ``(i) provide that, if the area to which the plan revision 
     applies is a covered area, each major stationary source that 
     emits PM2.5 and that is located in the covered 
     area shall pay to the Administrator a fee in an amount 
     calculated under subparagraph (B) as a penalty for the 
     failure to attain the standard for PM2.5 in the 
     final rules by the applicable attainment date specified in 
     the final rules; and
       ``(ii) include procedures for the assessment and collection 
     of those fees.
       ``(B) Amount of fee.--The amount of a fee paid under this 
     subsection for each ton of PM2.5 emitted by a 
     major stationary source in a covered area in nonattainment 
     during a calendar year in excess of 70 percent of the 
     baseline quantity shall be, as adjusted annually in 
     accordance with section 502(b)(3)(B)(v) (relating to 
     inflation adjustment), $50,000.
       ``(3) Penalties for failure to make progress toward 
     attainment in covered areas.--
       ``(A) In general.--Upon approval of a State implementation 
     plan that covers a covered area, and annually thereafter 
     until the applicable deadline by which the covered

[[Page S9131]]

     area is required to achieve attainment, as specified in the 
     final rules, the Administrator shall determine, in accordance 
     with subparagraph (B), whether the covered area is making 
     progress that is sufficient to enable the covered area to 
     achieve attainment by that deadline.
       ``(B) Determination of progress.--The Administrator shall 
     not determine under subparagraph (A) that a covered area is 
     making sufficient progress toward achieving attainment for 
     any calendar year unless the Administrator determines, at a 
     minimum, that the covered area has achieved a reduction in 
     the aggregate quantity of PM2.5 emitted in the 
     covered area for the calendar year that is equal to or 
     greater than the product obtained by multiplying--
       ``(i) the aggregate quantity, in tons, of the 
     PM2.5 emission reductions that are required, 
     during the period beginning on the date of the determination 
     by the Administrator and ending on the applicable date 
     referred to in subparagraph (A), to achieve attainment; by
       ``(ii) the quotient obtained by dividing--

       ``(I) the number of months, rounded to the nearest month, 
     between the date of submission of the State implementation 
     plan applicable to the covered area and the date of the 
     determination by the Administrator; by
       ``(II) the number of months, rounded to the nearest month, 
     between the date of submission of that State implementation 
     plan and the applicable attainment date referred to in 
     subparagraph (A).

       ``(C) Imposition of penalties.--If the Administrator 
     determines under this paragraph that a covered area is not 
     making sufficient progress to enable the covered area to 
     achieve attainment by the applicable deadline referred to in 
     subparagraph (A), the Administrator shall--
       ``(i) for the first calendar year for which the 
     determination is made, impose on each major stationary source 
     located in the covered area a penalty in an amount that is 
     equal to 10 percent of the amount of the fee that would be 
     paid by the major stationary source under paragraph (2)(B) 
     for failure to meet a national primary ambient air quality 
     standard for PM2.5 by the deadline referred to in 
     subparagraph (A); and
       ``(ii) for each subsequent calendar year until the deadline 
     referred to in subparagraph (A)--

       ``(I) reevaluate the progress being made by the covered 
     area toward achieving attainment by the deadline referred to 
     in subparagraph (A); and
       ``(II) if the Administrator determines that the covered 
     area is not making sufficient progress, impose on each major 
     stationary source located in the covered area a penalty in an 
     amount that is equal to the sum of the penalty imposed on the 
     same class of major stationary source under clause (i) and 
     the product obtained by multiplying--

       ``(aa) 5 percent of the fee that would be paid by the major 
     stationary source under paragraph (2)(B) for failure to meet 
     a national primary ambient air quality standard for 
     PM2.5 by the deadline referred to in subparagraph 
     (A); and
       ``(bb) the number of calendar years for which the covered 
     area has been previously determined not to have made 
     sufficient progress under this paragraph as of the date of 
     the determination by the Administrator (excluding the 
     determination for the current calendar year).
       ``(D) Suspension of penalties.--If the Administrator 
     determines under this paragraph that a covered area that was 
     determined not to be making sufficient progress toward 
     attainment under this paragraph for a preceding calendar year 
     is making sufficient progress toward attainment for the 
     current calendar year, the Administrator shall suspend the 
     imposition of penalties on major stationary sources located 
     in the covered area for the current calendar year.''.
                                 ______