[Congressional Record Volume 153, Number 66 (Tuesday, April 24, 2007)]
[Senate]
[Pages S4969-S4978]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. SANDERS (for himself, Mr. Lieberman, Mr. Leahy, and Mr. 
        Feingold):
  S. 1201. A bill to amend the Clean Air Act to reduce emissions from 
electric powerplants, and for other purposes; to the Committee on 
Environment and Public Works.
  Mr. SANDERS. Mr. President, today I am introducing the Clean Power 
Act of 2007. I ask unanimous consent that the full text of the bill be 
printed in the Record. This legislation is modeled after legislation 
spearheaded by my predecessor and ardent protector of the environment 
and the public health, Senator Jim Jeffords. I am proud to sit on the 
Environment and Public Works Committee that was under his leadership 
for a time, and I am also honored to be a member of another Committee 
of significant importance, the Energy and Natural Resources Committee.
  The Clean Power Act of 2007 gets to a problem on the minds of those 
in the northeast, who suffer insults to their health and their 
environment in the form of dirty air and polluted lakes, as well as 
those all across the country who want to see power plants shape up 
their act. This legislation will help clean the air and reduce global 
warming pollution by dramatically reducing the four major pollutants 
emitted by power plants--carbon dioxide, nitrogen oxide, sulfur 
dioxide, and mercury.
  Congress must work toward an economy-wide approach to addressing 
global warming, along the lines of the legislation I introduced with 
Senator Boxer and others: S. 309, the Global Warming Pollution 
Reduction Act. However, power plants should begin reducing their 
greenhouse gas emissions now, at the same time they are reducing 
emissions of other air pollutants. The Clean Power Act of 2007 would 
set this process in motion by using a cap and trade approach for 
reducing carbon dioxide, nitrogen oxide, and sulfur dioxide emissions. 
Additionally, the legislation makes specific linkages to an economy-
wide reduction of pollutants responsible for global warming by 
specifying that if Congress has not passed, and the President has not 
signed, legislation affecting at least 85 percent of manmade sources of 
global warming pollutants by 2012, that the emissions from power plants 
must be decreased each year by 3 percent until atmospheric 
concentrations of global warming pollutants are stabilized at 450 parts 
per million carbon dioxide equivalent. So, while I am putting forward 
this power plant only bill today, let it be clear that I remain firm in 
my belief that we must tackle the problem of global warming in a way 
that will actually make a difference to the future of the planet.
  I am happy to be joined in introducing this legislation by Senator 
Lieberman, Senator Leahy, and Senator Feingold. Additionally, I am glad 
to have the support of many national organizations, including the Clean 
Air Task Force, National Wildlife Federation, Environmental Defense, 
National Environmental Trust, the American Lung Association, Natural 
Resources Defense Council, and U.S. PIRG.
  As we move forward to address global warming and to protect current 
and future generations, dealing with power plant emissions is a good 
start. I look forward to gaining the support of my colleagues on this 
important legislation.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1201

       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 Power Act of 2007''.

     SEC. 2. ELECTRIC ENERGY GENERATION EMISSION REDUCTIONS.

       (a) In General.--The Clean Air Act (42 U.S.C. 7401 et seq.) 
     is amended by adding at the end the following:

      ``TITLE VII--ELECTRIC ENERGY GENERATION EMISSION REDUCTIONS

``Sec. 701. Findings.
``Sec. 702. Purposes.
``Sec. 703. Definitions.
``Sec. 704. Emission limitations.
``Sec. 705. Emission allowances.
``Sec. 706. Permitting and trading of emission allowances.
``Sec. 707. Emission allowance allocation.
``Sec. 708. Mercury emission limitations.
``Sec. 709. Other hazardous air pollutants.
``Sec. 710. Emission standards for affected units.
``Sec. 711. Low-carbon generation requirement.
``Sec. 712. Geological disposal of global warming pollutants.
``Sec. 713. Energy efficiency performance standard.
``Sec. 714. Renewable portfolio standard.
``Sec. 715. Standards to account for biological sequestration of 
              carbon.
``Sec. 716. Effect of failure to promulgate regulations.
``Sec. 717. Prohibitions.
``Sec. 718. Modernization of electric generation facilities.
``Sec. 719. Condition for treatment of electric generation facilities 
              after 2020.
``Sec. 720. Paramount interest waiver.
``Sec. 721. Relationship to other law.

     ``SEC. 701. FINDINGS.

       ``Congress finds that--
       ``(1) public health and the environment continue to suffer 
     as a result of pollution emitted by powerplants across the 
     United States, despite the success of Public Law 101-549 
     (commonly known as the `Clean Air Act Amendments of 1990') 
     (42 U.S.C. 7401 et seq.) in reducing emissions;
       ``(2) according to the most reliable scientific knowledge, 
     acid rain precursors must be significantly reduced for the 
     ecosystems of the Northeast and Southeast to recover from the 
     ecological harm caused by acid deposition;
       ``(3) because lakes and sediments across the United States 
     are being contaminated by mercury emitted by powerplants, 
     there is an increasing risk of mercury poisoning of aquatic 
     habitats and fish-consuming human populations;
       ``(4) electricity generation accounts for approximately 40 
     percent of the total emissions in the United States of carbon 
     dioxide, a major global warming pollutant causing global 
     warming;
       ``(5) the cumulative impact of powerplant emissions on 
     public and environmental health must be addressed swiftly by 
     reducing those harmful emissions to levels that are less 
     threatening;
       ``(6) 1,803,000,000 metric tons of carbon dioxide 
     equivalent were emitted during 1990;
       ``(7)(A) the atmosphere is a public resource; and
       ``(B) emission allowances, representing permission to use 
     that resource for disposal of air pollution from electricity 
     generation, should be allocated to promote public purposes, 
     including--
       ``(i) protecting electricity consumers from adverse 
     economic impacts;
       ``(ii) providing transition assistance to adversely 
     affected employees, communities, and industries; and
       ``(iii) promoting clean energy resources and energy 
     efficiency;
       ``(8) an array of technological options exist for use in 
     reducing global warming pollution emissions, and significant 
     reductions can be attained using a portfolio of options that 
     will not adversely impact the economy;
       ``(9) the ingenuity of the people of the United States will 
     allow the United States to become a leader in solving global 
     warming; and
       ``(10) it should be a goal of the United States to achieve 
     a reduction in global warming pollution emissions in the 
     United States--
       ``(A) to ensure that the average global temperature does 
     not increase by more than 3.6 degrees Fahrenheit (2 degrees 
     Celsius); and
       ``(B) to ensure the achievement of an average global 
     atmospheric concentration of global warming pollutants that 
     does not exceed 450 parts per million in carbon dioxide 
     equivalent.

[[Page S4970]]

     ``SEC. 702. PURPOSES.

       ``The purposes of this title are--
       ``(1) to alleviate the environmental and public health 
     damage caused by emissions of sulfur dioxide, nitrogen 
     oxides, global warming pollutants, and mercury resulting from 
     the combustion of fossil fuels in the generation of electric 
     and thermal energy;
       ``(2) to reduce the annual national emissions from electric 
     generation facilities to not more than--
       ``(A) for calendar years 2010 through 2012--
       ``(i) 2,250,000 tons of sulfur dioxide; and
       ``(ii) 1,510,000 tons of nitrogen oxides; and
       ``(B) for calendar year 2013 and each calendar year 
     thereafter--
       ``(i) 1,300,000 tons of sulfur dioxide; and
       ``(ii) 900,000 tons of nitrogen oxides;
       ``(3)(A) to reduce, by December 31, 2012, the annual 
     national emissions of mercury from electric generation 
     facilities to not more than 5 tons; and
       ``(B) to the maximum extent practicable, to achieve a 
     facility-specific reduction in emissions of mercury of more 
     than 90 percent;
       ``(4) beginning in calendar year 2010, to reduce each 
     calendar year the annual national emissions of global warming 
     pollutants from electric generation facilities to achieve a 
     reduction in emissions of global warming pollutants equal 
     to--
       ``(A) by December 31, 2011, not more than 2,300,000,000 
     metric tons of carbon dioxide equivalent;
       ``(B) by December 31, 2015, not more than 2,100,000,000 
     metric tons of carbon dioxide equivalent;
       ``(C) by December 31, 2020, not more than 1,803,000,000 
     metric tons of carbon dioxide equivalent; and
       ``(D) by December 31, 2025, not more than 1,500,000,000 
     metric tons of carbon dioxide equivalent;
       ``(5) to effectuate the reductions described in paragraphs 
     (2) through (4) by--
       ``(A) requiring electric generation facilities to comply 
     with specified emission limitations by specified deadlines; 
     and
       ``(B) allowing electric generation facilities to meet the 
     emission limitations (other than the emission limitation for 
     mercury) through an alternative method of compliance 
     consisting of an emission allowance and transfer system;
       ``(6) to reduce, by December 31, 2050, emissions from power 
     plants of global warming pollutants that cause global warming 
     to facilitate the achievement of an economy-wide reduction, 
     consistent with the goal of stabilization of worldwide 
     atmospheric concentrations of global warming pollutants at 
     450 parts per million carbon dioxide equivalent; and
       ``(7) to encourage energy conservation, use of renewable 
     and clean alternative technologies, and pollution prevention 
     as long-range strategies, consistent with this title, for 
     reducing air pollution and other adverse impacts of energy 
     generation and use.

     ``SEC. 703. DEFINITIONS.

       ``In this title:
       ``(1) Academy.--The term `Academy' means the National 
     Academy of Sciences.
       ``(2) Carbon dioxide equivalent.--The term `carbon dioxide 
     equivalent' means, for each global warming pollutant, the 
     quantity of the global warming pollutant that makes the same 
     contribution to global warming as 1 metric ton of carbon 
     dioxide, as determined by the Administrator, taking into 
     consideration the report described in section 705(d)(1).
       ``(3) Covered pollutant.--The term `covered pollutant' 
     means--
       ``(A) sulfur dioxide;
       ``(B) any nitrogen oxide;
       ``(C) mercury; and
       ``(D) any global warming pollutant.
       ``(4) Electric generation facility.--The term `electric 
     generation facility' means an electric or thermal electricity 
     generating unit, a combination of such units, or a 
     combination of 1 or more such units and 1 or more combustion 
     devices, that--
       ``(A) has a nameplate capacity of 25 megawatts or more (or 
     the equivalent in thermal energy generation, determined in 
     accordance with a methodology developed by the 
     Administrator);
       ``(B) generates electric energy, for sale, through 
     combustion of fossil fuel; and
       ``(C) emits a covered pollutant into the atmosphere.
       ``(5) Electricity intensive product.--The term `electricity 
     intensive product' means a product with respect to which the 
     cost of electricity consumed in the production of the product 
     represents more than 5 percent of the value of the product.
       ``(6) Emission allowance.--The term `emission allowance' 
     means a limited authorization to emit in accordance with this 
     title--
       ``(A) 1 ton of sulfur dioxide;
       ``(B) 1 ton of nitrogen oxides; or
       ``(C) 1 ton of global warming pollutant.
       ``(7) Energy efficiency project.--The term `energy 
     efficiency project' means any specific action (other than 
     ownership or operation of an energy efficient building) 
     commenced after the date of enactment of this title--
       ``(A) at a facility (other than an electric generation 
     facility), that verifiably reduces the annual electricity or 
     natural gas consumption per unit output of the facility, as 
     compared with the annual electricity or natural gas 
     consumption per unit output that would be expected in the 
     absence of an allocation of emission allowances (as 
     determined by the Administrator); or
       ``(B) by an entity that is primarily engaged in the 
     transmission and distribution of electricity, that 
     significantly improves the efficiency of that type of entity, 
     as compared with standards for efficiency developed by the 
     Administrator, in consultation with the Secretary of Energy, 
     after the date of enactment of this title.
       ``(8) Energy efficient building.--The term `energy 
     efficient building' means a residential building or 
     commercial building completed after the date of enactment of 
     this title for which the projected lifetime consumption of 
     electricity or natural gas for heating, cooling, and 
     ventilation is at least 30 percent less than the lifetime 
     consumption of a typical new residential building or 
     commercial building, as determined by the Administrator (in 
     consultation with the Secretary of Energy)--
       ``(A) on a State or regional basis; and
       ``(B) taking into consideration--
       ``(i) applicable building codes; and
       ``(ii) consumption levels achieved in practice by new 
     residential buildings or commercial buildings in the absence 
     of an allocation of emission allowances.
       ``(9) Energy efficient product.--The term `energy efficient 
     product' means a product manufactured after the date of 
     enactment of this title that has an expected lifetime 
     electricity or natural gas consumption that--
       ``(A) is less than the average lifetime electricity or 
     natural gas consumption for that type of product; and
       ``(B) does not exceed the lesser of--
       ``(i) the maximum energy consumption that qualifies for the 
     applicable Energy Star label for that type of product; or
       ``(ii) the average energy consumption of the most efficient 
     25 percent of that type of product manufactured in the same 
     year.
       ``(10) Facility.--The term `facility' means any building, 
     structure, or installation that is located--
       ``(A) on 1 or more contiguous or adjacent properties under 
     the common control of at least 1 person; and
       ``(B) in the United States.
       ``(11) Global warming pollutant.--The term `global warming 
     pollutant' means--
       ``(A) carbon dioxide;
       ``(B) methane;
       ``(C) nitrous oxide;
       ``(D) hydrofluorocarbons;
       ``(E) perfluorocarbons;
       ``(F) sulfur hexafluoride; and
       ``(G) any other anthropogenically-emitted gas that the 
     Administrator, after notice and comment, determines to 
     contribute to global warming.
       ``(12) Global warming pollution.--The term `global warming 
     pollution' means any combination of 1 or more global warming 
     pollutants emitted into the ambient air or atmosphere.
       ``(13) Lifetime.--The term `lifetime' means--
       ``(A) in the case of a residential building that is an 
     energy efficient building, 30 years;
       ``(B) in the case of a commercial building that is an 
     energy efficient building, 15 years; and
       ``(C) in the case of an energy efficient product, a period 
     determined by the Administrator to be the average life of 
     that type of energy efficient product.
       ``(14) Mercury.--The term `mercury' includes any mercury 
     compound.
       ``(15) NAS report.--The term `NAS report' means a report 
     completed by the Academy under subsection (d)(1) or (e)(2) of 
     section 705.
       ``(16) Nonwestern region.--The term `nonwestern region' 
     means the area of the States that is not included in the 
     western region.
       ``(17) Renewable electricity generating unit.--The term 
     `renewable electricity generating unit' means a unit that--
       ``(A) has been in operation for 10 years or less; and
       ``(B) generates electric energy by means of--
       ``(i) wind;
       ``(ii) biomass;
       ``(iii) landfill gas;
       ``(iv) a geothermal, solar thermal, or photovoltaic source; 
     or
       ``(v) a fuel cell operating on fuel derived from a 
     renewable source of energy.
       ``(18) Small electric generation facility.--The term `small 
     electric generation facility' means an electric or thermal 
     electricity generating unit, or combination of units, that--
       ``(A) has a nameplate capacity of less than 25 megawatts 
     (or the equivalent in thermal energy generation, determined 
     in accordance with a methodology developed by the 
     Administrator);
       ``(B) generates electric energy, for sale, through 
     combustion of fossil fuel; and
       ``(C) emits a covered pollutant into the atmosphere.
       ``(19) Western region.--The term `western region' means the 
     area comprising the States of Arizona, California, Colorado, 
     Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, 
     and Wyoming.

     ``SEC. 704. CONDITION FOR TREATMENT OF ELECTRIC GENERATION 
                   FACILITIES AFTER 2020.

       ``If, by December 31, 2012, Congress does not enact, and 
     the President does not sign, an Act affecting at least 85 
     percent of manmade sources of global warming pollution in the 
     United States designed to reduce, on an economy-wide basis, 
     the quantity of global warming pollutants emitted from those

[[Page S4971]]

     sources, the emissions limitations for electric generation 
     facilities shall be successively decreased by at least 3 
     percent below the limitations required by this title for the 
     preceding calendar year--
       ``(1) for each of calendar years 2026 through 2050;
       ``(2) until, as determined by the Administrator, the 
     purpose described in section 702(6) is achieved; or
       ``(3) until Congress enacts, and the President signs, such 
     an Act.

     ``SEC. 705. EMISSION LIMITATIONS.

       ``(a) In General.--Subject to subsections (b) through (e), 
     the Administrator shall promulgate regulations to ensure that 
     the total annual emissions of covered pollutants from all 
     electric generation facilities located in all States does not 
     exceed--
       ``(1) in the case of sulfur dioxide--
       ``(A) in the western region--
       ``(i) for calendar years 2010 through 2012, 274,500 tons; 
     and
       ``(ii) for calendar year 2013 and each calendar year 
     thereafter, 158,600 tons; and
       ``(B) in the nonwestern region--
       ``(i) for calendar years 2010 through 2012, 1,975,500 tons; 
     and
       ``(ii) for calendar year 2013 and each calendar year 
     thereafter, 1,141,400 tons;
       ``(2) in the case of nitrogen oxides--
       ``(A) for calendar years 2010 through 2012, 1,510,000 tons; 
     and
       ``(B) for calendar year 2013 and each calendar year 
     thereafter, 900,000 tons;
       ``(3) in the case of global warming pollutants, beginning 
     in calendar year 2010, a quantity to be reduced each calendar 
     year to achieve a reduction in emissions of global warming 
     pollutants equal to--
       ``(A) by December 31, 2011, not more than 2,300,000,000 
     metric tons of carbon dioxide equivalent;
       ``(B) by December 31, 2015, not more than 2,100,000,000 
     metric tons of carbon dioxide equivalent;
       ``(C) by December 31, 2020, not more than 1,803,000,000 
     metric tons of carbon dioxide equivalent; and
       ``(D) by December 31, 2025, not more than 1,500,000,000 
     metric tons of carbon dioxide equivalent; and
       ``(4) in the case of mercury, by December 31, 2012, and 
     during each calendar year thereafter, the lower of, as 
     applicable--
       ``(A) 5 tons; and
       ``(B) to the maximum extent practicable, with respect to an 
     electric generation facility, a quantity of mercury emissions 
     that represents more than a 90-percent reduction of emissions 
     of mercury by the electric generation facility, as compared 
     to the average emissions of mercury during calendar years 
     2009 through 2011.
       ``(b) Excess Emissions Based on Unused Allowances.--The 
     regulations promulgated under subsection (a) shall authorize 
     emissions of covered pollutants in excess of the national 
     emission limitations established under that subsection for a 
     calendar year to the extent that the number of tons of the 
     excess emissions is less than or equal to the number of 
     emission allowances that are--
       ``(1) used in the calendar year; but
       ``(2) allocated for any preceding calendar year under 
     section 708.
       ``(c) Reductions.--For calendar year 2010 and each calendar 
     year thereafter, the quantity of emissions specified for each 
     covered pollutant in subsection (a) shall be reduced by the 
     sum of--
       ``(1) the number of tons of the covered pollutant that were 
     emitted by small electric generation facilities in the second 
     preceding calendar year; and
       ``(2) any number of tons of reductions in emissions of the 
     covered pollutant required under section 706(h).
       ``(d) Accelerated Global Warming Pollution Emissions 
     Limitations.--
       ``(1) Academy report on global change events.--
       ``(A) In general.--The Administrator shall offer to enter 
     into a contract with the Academy under which the Academy, not 
     later than 2 years after the date of enactment of this title, 
     and every 3 years thereafter, shall submit to Congress and 
     the Administrator a report that describes whether any event 
     described in subparagraph (B)--
       ``(i) has occurred or is more likely than not to occur in 
     the foreseeable future; and
       ``(ii) in the judgment of the Academy, is the result of 
     anthropogenic climate change.
       ``(B) Events.--The events referred to in subparagraph (A) 
     are--
       ``(i) the exceedance of an atmospheric concentration of 
     global warming pollutants of 450 parts per million in carbon 
     dioxide equivalent; and
       ``(ii) an increase of global average temperatures in excess 
     of 3.6 degrees Fahrenheit (2 degrees Celsius) above the 
     preindustrial average.
       ``(2) Acceleration of limitations.--If a NAS report 
     determines that an event described in paragraph (1)(B) has 
     occurred, or is more likely than not to occur in the 
     foreseeable future, not later than 2 years after the date of 
     completion of the NAS report, the Administrator, after an 
     opportunity for notice and public comment and taking into 
     consideration the new information contained in the NAS 
     report, may--
       ``(A) adjust any global warming pollution emissions 
     limitation under this section; and
       ``(B) promulgate such regulations as the Administrator 
     determines to be necessary--
       ``(i) to reduce the aggregate net levels of global warming 
     pollution emissions from the United States on an accelerated 
     schedule; and
       ``(ii) to minimize the effects of rapid climate change and 
     otherwise achieve the purposes of this title.
       ``(e) Report on Achievement of Global Warming Pollution 
     Emissions Limitations.--
       ``(1) Definition of technologically infeasible.--In this 
     subsection, the term `technologically infeasible', with 
     respect to compliance with a standard or requirement under 
     this subsection, means that adequate technology or 
     infrastructure does not exist, or is not reasonably 
     anticipated to exist, within a sufficient time to permit 
     compliance with the standard or requirement.
       ``(2) Technology reports.--The Administrator shall offer to 
     enter into a contract with the Academy under which the 
     Academy, not later than 2 years after the date of enactment 
     of this title and every 3 years thereafter, shall submit to 
     Congress and the Administrator a report that analyzes--
       ``(A) the status of current global warming pollution 
     emission reduction technologies, including--
       ``(i) technologies for capture and disposal of global 
     warming pollutants;
       ``(ii) efficiency improvement technologies;
       ``(iii) zero-global-warming-pollution-emitting energy 
     technologies; and
       ``(iv) above- and below-ground biological sequestration 
     technologies;
       ``(B) whether any requirement under this title (including 
     regulations promulgated pursuant to this title) requires a 
     level of emission control or reduction that, based on 
     available or expected technology, will be technologically 
     infeasible at the time at which the requirement becomes 
     effective;
       ``(C) the projected date on which any technology determined 
     to be technologically infeasible will become technologically 
     feasible;
       ``(D) whether any technology determined to be 
     technologically infeasible cannot reasonably be expected to 
     become technologically feasible before January 1, 2050; and
       ``(E) the costs of available alternative global warming 
     pollution emission reduction strategies that could be used or 
     pursued in lieu of any technology that is determined to be 
     technologically infeasible.
       ``(3) Conclusion.--If a NAS report concludes that a global 
     warming pollution emissions limitation required by this 
     section cannot be achieved because the limitation is 
     technologically infeasible, the Administrator shall submit to 
     Congress a notification of that conclusion.
       ``(4) Evaluation of certain purpose.--Not later than 
     December 31, 2037, the Administrator shall offer to enter 
     into a contract with the Academy under which, not later than 
     December 31, 2039, the Academy shall prepare and submit to 
     Congress and the Administrator a report on the 
     appropriateness of the purpose described in section 702(6), 
     taking into consideration--
       ``(A) information that was not available as of the date of 
     enactment of this title; and
       ``(B) events that have occurred since that date relating 
     to--
       ``(i) climate change;
       ``(ii) climate change technologies; and
       ``(iii) national and international climate change 
     commitments.

     ``SEC. 706. EMISSION ALLOWANCES.

       ``(a) Creation and Allocation.--
       ``(1) In general.--Subject to paragraphs (2) and (3), there 
     are created, and the Administrator shall allocate in 
     accordance with section 708, emission allowances as follows:
       ``(A) In the case of sulfur dioxide--
       ``(i) in the western region--

       ``(I) for calendar years 2010 through 2012, emission 
     allowances for 274,500 tons; and
       ``(II) for calendar year 2013 and each calendar year 
     thereafter, emission allowances for 158,600 tons; and

       ``(ii) in the nonwestern region--

       ``(I) for calendar years 2010 through 2012, emission 
     allowances for 1,975,500 tons; and
       ``(II) for calendar year 2013 and each calendar year 
     thereafter, emission allowances for 1,141,400 tons.

       ``(B) In the case of nitrogen oxides--
       ``(i) for calendar years 2010 through 2012, emission 
     allowances for 1,510,000 tons; and
       ``(ii) for calendar year 2013 and each calendar year 
     thereafter, emission allowances for 900,000 tons.
       ``(C) In the case of global warming pollutants, beginning 
     in calendar year 2010, a quantity of emission allowances to 
     be reduced each calendar year to achieve a reduction in 
     emissions of global warming pollutants equal to--
       ``(i) by December 31, 2011, not more than 2,300,000,000 
     metric tons of carbon dioxide equivalent;
       ``(ii) by December 31, 2015, not more than 2,100,000,000 
     metric tons of carbon dioxide equivalent;
       ``(iii) by December 31, 2020, not more than 1,803,000,000 
     metric tons of carbon dioxide equivalent; and
       ``(iv) by December 31, 2025, not more than 1,500,000,000 
     metric tons of carbon dioxide equivalent.
       ``(2) Reductions.--For calendar year 2010 and each calendar 
     year thereafter, the number of emission allowances specified 
     for each covered pollutant in paragraph (1) shall be reduced 
     by a number equal to the sum of--
       ``(A) the number of tons of the covered pollutant that were 
     emitted by small electric generation facilities in the second 
     preceding calendar year; and
       ``(B) any number of tons of reductions in emissions of the 
     covered pollutant required under subsection (h).
       ``(3) Updates.--Once every 5 years, the Administrator 
     shall--

[[Page S4972]]

       ``(A) review the formula by which the Administrator 
     allocates allowances under this title; and
       ``(B) update that formula, as the Administrator determines 
     to be necessary given the results of the review.
       ``(b) Nature of Emission Allowances.--
       ``(1) Not a property right.--An emission allowance 
     allocated by the Administrator under subsection (a) is not a 
     property right.
       ``(2) No limit on authority to terminate or limit.--Nothing 
     in this title or any other provision of law limits the 
     authority of the United States to terminate or limit an 
     emission allowance.
       ``(3) Tracking and transfer of emission allowances.--
       ``(A) In general.--Not later than 1 year after the date of 
     enactment of this title, the Administrator shall promulgate 
     regulations to establish an emission allowance tracking and 
     transfer system for emission allowances of sulfur dioxide, 
     nitrogen oxides, and global warming pollutants.
       ``(B) Requirements.--The emission allowance tracking and 
     transfer system established under subparagraph (A) shall--
       ``(i) incorporate the requirements of subsections (b) and 
     (d) of section 412 (except that written certification by the 
     transferee shall not be necessary to effect a transfer); and
       ``(ii) permit any entity--

       ``(I) to buy, sell, or hold an emission allowance; and
       ``(II) to permanently retire an unused emission allowance.

       ``(C) Proceeds of transfers.--Proceeds from the transfer of 
     emission allowances by any person to which the emission 
     allowances have been allocated--
       ``(i) shall not constitute funds of the United States; and
       ``(ii) shall not be available to meet any obligations of 
     the United States.
       ``(c) Identification and Use.--
       ``(1) In general.--Each emission allowance allocated by the 
     Administrator shall bear a unique serial number, including--
       ``(A) an identifier of the covered pollutant to which the 
     emission allowance pertains; and
       ``(B) the first calendar year for which the allowance may 
     be used.
       ``(2) Sulfur dioxide emission allowances.--In the case of 
     sulfur dioxide emission allowances, the Administrator shall 
     ensure that the emission allowances allocated to electric 
     generation facilities in the western region are 
     distinguishable from emission allowances allocated to 
     electric generation facilities in the nonwestern region.
       ``(3) Year of use.--Each emission allowance may be used in 
     the calendar year for which the emission allowance is 
     allocated or in any subsequent calendar year.
       ``(d) Annual Submission of Emission Allowances.--
       ``(1) In general.--On or before April 1, 2011, and April 1 
     of each year thereafter, the owner or operator of each 
     electric generation facility shall submit to the 
     Administrator 1 emission allowance for the applicable covered 
     pollutant (other than mercury) for each ton of sulfur 
     dioxide, nitrogen oxides, or global warming pollutants 
     emitted by the electric generation facility during the 
     preceding calendar year.
       ``(2) Special rule for ozone exceedances.--
       ``(A) Identification of facilities contributing to 
     nonattainment.--Not later than December 31, 2009, and the end 
     of each 3-year period thereafter, each State, consistent with 
     the obligations of the State under section 110(a)(2)(D), 
     shall identify the electric generation facilities in the 
     State and in other States that are significantly contributing 
     (as determined based on guidance issued by the Administrator) 
     to nonattainment of the national ambient air quality standard 
     for ozone in the State.
       ``(B) Submission of additional allowances.--In calendar 
     year 2010 and each calendar year thereafter, on petition from 
     a State or a person demonstrating that the control measures 
     in effect at an electric generation facility that is 
     identified under subparagraph (A) as significantly 
     contributing to nonattainment of the national ambient air 
     quality standard for ozone in a State during the preceding 
     calendar year are inadequate to prevent the significant 
     contribution described in subparagraph (A), the 
     Administrator, if the Administrator determines that the 
     electric generation facility is inadequately controlled for 
     nitrogen oxides, may require that the electric generation 
     facility submit 3 nitrogen oxide emission allowances for each 
     ton of nitrogen oxides emitted by the electric generation 
     facility during any period of an exceedance of the national 
     ambient air quality standard for ozone in the State during 
     the preceding calendar year.
       ``(3) Regional limitations for sulfur dioxide.--The 
     Administrator shall not allow--
       ``(A) the use of sulfur dioxide emission allowances 
     allocated for the western region to meet the obligations 
     under this subsection of electric generation facilities in 
     the nonwestern region; or
       ``(B) the use of sulfur dioxide emission allowances 
     allocated for the nonwestern region to meet the obligations 
     under this subsection of electric generation facilities in 
     the western region.
       ``(e) Emission Verification, Monitoring, and 
     Recordkeeping.--
       ``(1) In general.--The Administrator shall ensure that 
     Federal regulations, in combination with any applicable State 
     regulations, are adequate to verify, monitor, and document 
     emissions of covered pollutants from electric generation 
     facilities.
       ``(2) Inventory of emissions from small electric generation 
     facilities.--On or before July 1, 2008, the Administrator, in 
     cooperation with State agencies, shall complete, and on an 
     annual basis update, a comprehensive inventory of emissions 
     of sulfur dioxide, nitrogen oxides, global warming 
     pollutants, and particulate matter from small electric 
     generation facilities.
       ``(3) Monitoring information.--
       ``(A) In general.--Not later than 180 days after the date 
     of enactment of this title, the Administrator shall 
     promulgate regulations to require each electric generation 
     facility to submit to the Administrator--
       ``(i) not later than April 1 of each year, verifiable 
     information on covered pollutants emitted by the electric 
     generation facility in the preceding calendar year, expressed 
     in--

       ``(I) tons of covered pollutants; and
       ``(II) tons of covered pollutants per megawatt hour of 
     energy (or the equivalent thermal energy) generated; and

       ``(ii) as part of the first submission under clause (i), 
     verifiable information on covered pollutants emitted by the 
     electric generation facility in each of calendar years 2002 
     through 2006 if the electric generation facility was required 
     to report that information in those calendar years.
       ``(B) Source of information.--Information submitted under 
     subparagraph (A) shall be obtained using a continuous 
     emission monitoring system (as defined in section 402).
       ``(C) Availability to the public.--The information 
     described in subparagraph (A) shall be made available to the 
     public--
       ``(i) in the case of the first year in which the 
     information is required to be submitted under that 
     subparagraph, not later than 18 months after the date of 
     enactment of this title; and
       ``(ii) in the case of each year thereafter, not later than 
     April 1 of the year.
       ``(4) Ambient air quality monitoring for sulfur dioxide and 
     hazardous air pollutants.--
       ``(A) In general.--Beginning January 1, 2008, each coal-
     fired electric generation facility with an aggregate 
     generating capacity of 50 megawatts or more shall, in 
     accordance with guidelines issued by the Administrator, 
     commence ambient air quality monitoring within a 30-mile 
     radius of the coal-fired electric generation facility for the 
     purpose of measuring maximum concentrations of sulfur dioxide 
     and hazardous air pollutants emitted by the coal-fired 
     electric generation facility.
       ``(B) Location of monitoring points.--Monitoring under 
     subparagraph (A) shall include monitoring at not fewer than 2 
     points--
       ``(i) that are at ground level and within 3 miles of the 
     coal-fired electric generation facility;
       ``(ii) at which the concentration of pollutants being 
     monitored is expected to be the greatest; and
       ``(iii) at which the monitoring shall be the most frequent.
       ``(C) Frequency of monitoring of sulfur dioxide.--
     Monitoring of sulfur dioxide under subparagraph (A) shall be 
     carried out on a continuous basis and averaged over 5-minute 
     periods.
       ``(D) Availability to the public.--The results of the 
     monitoring under subparagraph (A) shall be made available to 
     the public.
       ``(f) Excess Emission Penalty.--
       ``(1) In general.--Subject to paragraph (2), section 411 
     shall be applicable to an owner or operator of an electric 
     generation facility.
       ``(2) Calculation of penalty.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the penalty for failure to submit emission allowances for 
     covered pollutants as required under subsection (d) shall be 
     equal to 3 times the product obtained by multiplying--
       ``(i) as applicable--

       ``(I) the number of tons emitted in excess of the emission 
     limitation requirement applicable to the electric generation 
     facility; or
       ``(II) the number of emission allowances that the owner or 
     operator failed to submit; and

       ``(ii) the average annual market price of emission 
     allowances (as determined by the Administrator).
       ``(B) Mercury.--In the case of mercury, the penalty shall 
     be equal to 3 times the product obtained by multiplying--
       ``(i) the number of grams emitted in excess of the emission 
     limitation requirement for mercury applicable to the electric 
     generation facility; and
       ``(ii) the average cost of mercury controls at electricity 
     generating units that have a nameplate capacity of 25 
     megawatts or more in all States (as determined by the 
     Administrator).
       ``(g) Significant Adverse Local Impacts.--
       ``(1) In general.--If the Administrator determines that 
     emissions of an electric generation facility may reasonably 
     be anticipated to cause or contribute to a significant 
     adverse impact on an area (including endangerment of public 
     health, contribution to acid deposition in a sensitive 
     receptor area, and other degradation of the environment), the 
     Administrator shall limit the emissions of the electric 
     generation facility as necessary to avoid that impact.
       ``(2) Violation.--Notwithstanding the availability of 
     emission allowances, it shall be a violation of this Act for 
     any electric

[[Page S4973]]

     generation facility to exceed any limitation on emissions 
     established under paragraph (1).
       ``(h) Additional Reductions.--
       ``(1) Protection of public health or welfare or the 
     environment.--If the Administrator determines that the 
     emission levels necessary to achieve the national emission 
     limitations established under section 705 are not reasonably 
     anticipated to protect public health or welfare or the 
     environment (including protection of children, pregnant 
     women, minority or low-income communities, and other 
     sensitive populations), the Administrator may require 
     reductions in emissions from electric generation facilities 
     in addition to the reductions required under the other 
     provisions of this title.
       ``(2) Emission allowance trading.--
       ``(A) Studies.--
       ``(i) In general.--In 2015 and at the end of each 3-year 
     period thereafter, the Administrator shall complete a study 
     of the impacts of the emission allowance trading authorized 
     under this title.
       ``(ii) Required assessment.--The study shall include an 
     assessment of ambient air quality in areas surrounding 
     electric generation facilities that participate in emission 
     allowance trading, including a comparison between--

       ``(I) the ambient air quality in those areas; and
       ``(II) the national average ambient air quality.

       ``(B) Limitation on emissions.--If the Administrator 
     determines, based on the results of a study under 
     subparagraph (A), that adverse local impacts result from 
     emission allowance trading, the Administrator may require 
     reductions in emissions from electric generation facilities 
     in addition to the reductions required under the other 
     provisions of this title.
       ``(i) Use of Certain Other Emission Allowances.--
       ``(1) In general.--Subject to paragraph (2), emission 
     allowances or other emission trading instruments created 
     under title I or IV for sulfur dioxide or nitrogen oxides 
     shall not be valid for submission under subsection (d).
       ``(2) Emission allowances placed in reserve.--
       ``(A) In general.--An emission allowance described in 
     paragraph (1) that was placed in reserve under section 
     404(a)(2) or 405 or through regulations implementing controls 
     on nitrogen oxides, because an affected unit emitted fewer 
     tons of sulfur dioxide or nitrogen oxides than were permitted 
     under an emission limitation imposed under title I or IV 
     before the date of enactment of this title, shall be valid 
     for submission under subsection (d).
       ``(B) Emission allowances resulting from achievement of new 
     source performance standards.--If an emission allowance 
     described in subparagraph (A) was created and placed in 
     reserve during the period of 2001 through 2009 by the owner 
     or operator of an electric generation facility through the 
     application of pollution control technology that resulted in 
     the achievement and maintenance by the electric generation 
     facility of the applicable standards of performance required 
     of new sources under section 111, the emission allowance 
     shall be valid for submission under subsection (d).

     ``SEC. 707. PERMITTING AND TRADING OF EMISSION ALLOWANCES.

       ``Not later than 1 year after the date of enactment of this 
     title, the Administrator shall promulgate regulations to 
     establish a permitting and emission allowance trading 
     compliance program to implement the limitations on emissions 
     of covered pollutants from electric generation facilities 
     established under section 705.

     ``SEC. 708. EMISSION ALLOWANCE ALLOCATION.

       ``(a) Sulfur Dioxide and Nitrogen Oxides.--
       ``(1) Initial allocations.--For calendar years 2010 through 
     2012, the Administrator shall allocate emission allowances 
     for sulfur dioxide and nitrogen oxides, consistent with 
     applicable law (including regulations).
       ``(2) Subsequent allocations.--
       ``(A) In general.--For calendar year 2013 and each calendar 
     year thereafter, the Administrator shall allocate emission 
     allowances for sulfur dioxide and nitrogen oxides as the 
     Administrator determines to be appropriate in accordance with 
     subparagraphs (B) and (C).
       ``(B) Allocation factors.--In allocating emission 
     allowances for sulfur dioxide and nitrogen oxides under 
     subparagraph (A), the Administrator, in consultation with the 
     Secretary of Commerce, shall take into consideration the 
     factors described in subsection (c)(1).
       ``(b) Global Warming Pollutants.--
       ``(1) In general.--For calendar year 2010, the 
     Administrator shall transfer to each trustee appointed 
     pursuant to paragraph (4)(A) for auction not less than 50 
     percent of the quantity of emission allowances available for 
     allocation for global warming pollutants for the calendar 
     year for the purposes described in paragraph (4).
       ``(2) Increase in quantity.--For calendar year 2011 and 
     each calendar year thereafter, taking into consideration the 
     factors described in paragraph (3), the Administrator shall 
     successively increase the quantity of emission allowances 
     transferred to trustees for auction under paragraph (1) 
     until, by not later than 15 years after the date of enactment 
     of this title, 100 percent of emission allowances available 
     for allocation for global warming pollutants for a calendar 
     year are available for auction.
       ``(3) Allocation factors.--In transferring emission 
     allowances to trustees for auction under paragraph (1), the 
     Administrator, in consultation with the Secretary of 
     Commerce, shall take into consideration the factors described 
     in subsection (c)(1).
       ``(4) Requirements.--Regulations promulgated to carry out 
     this subsection may provide for, as the Administrator 
     determines to be necessary, the appointment of 1 or more 
     trustees--
       ``(A)(i) to receive emission allowances for the benefit of 
     households, communities, and other entities;
       ``(ii) to sell the emission allowances at fair market 
     value; and
       ``(iii) to distribute the proceeds of any sale of emission 
     allowances to the appropriate beneficiaries; or
       ``(B) to allocate emission allowances, in accordance with 
     applicable regulations, to--
       ``(i) communities, individuals, and companies that have 
     experienced disproportionate adverse impacts as a result of--

       ``(I) the transition to a lower carbon-emitting economy; or
       ``(II) global warming;

       ``(ii) owners and operators of highly energy-efficient 
     buildings, including--

       ``(I) residential users;
       ``(II) producers of highly energy-efficient products; and
       ``(III) entities that carry out energy-efficiency 
     improvement projects that result in consumer-side reductions 
     in electricity use;

       ``(iii) entities that will use the emission allowances for 
     the purpose of carrying out geological sequestration of 
     carbon dioxide produced by an anthropogenic global warming 
     pollution emission source in accordance with requirements 
     established by the Administrator;
       ``(iv) such individuals and entities as the Administrator 
     determines to be appropriate, for use in carrying out 
     projects to reduce net carbon dioxide emissions through 
     above-ground and below-ground biological carbon dioxide 
     sequestration (including sequestration in forests, forest 
     soils, agricultural soils, rangeland, or grassland in the 
     United States);
       ``(v) such individuals and entities (including fish and 
     wildlife agencies) as the Administrator determines to be 
     appropriate, for use in carrying out projects to protect and 
     restore ecosystems (including fish and wildlife) affected by 
     climate change; and
       ``(vi) manufacturers producing consumer products that 
     result in substantially reduced global warming pollution 
     emissions, for use in funding rebates for purchasers of those 
     products.
       ``(c) Administration.--
       ``(1) Allocation factors.--Before making any allocation or 
     transfer of emission allowances under subsection (a) or (b), 
     the Administrator, in consultation with the Secretary of 
     Commerce, shall take into consideration--
       ``(A) the distributive effect of the allocations on 
     household income and net worth of individuals;
       ``(B) the impact of the allocations on corporate income, 
     taxes, and asset value;
       ``(C) the impact of the allocations on income levels and 
     energy consumption of consumers;
       ``(D) the effects of the allocations with respect to 
     economic efficiency;
       ``(E) the ability of electric generation facilities to pass 
     through compliance costs to customers of the electric 
     generation facilities;
       ``(F) the degree to which the quantity of allocations to 
     the covered sectors should decrease over time; and
       ``(G) the need to maintain the international 
     competitiveness of United States manufacturing and avoid the 
     additional loss of United States manufacturing jobs.
       ``(2) Allocation recommendations and implementation.--
       ``(A) In general.--Not later than 2 years after the date of 
     enactment of this title, and before making any allocation or 
     transfer of emission allowances under subsection (a) or (b), 
     the Administrator shall submit a description of any 
     determination of the Administrator relating to the allocation 
     or transfer under that subsection to--
       ``(i) the Committees on Environment and Public Works and 
     Commerce, Science, and Transportation of the Senate; and
       ``(ii) the Committees on Energy and Commerce and Science of 
     the House of Representatives.
       ``(B) Treatment of determinations.--A determination of the 
     Administrator described in subparagraph (A), and any 
     allocation or transfer of emission allowances made pursuant 
     to such a determination, shall be--
       ``(i) considered to be a major rule (as defined in section 
     804 of title 5, United States Code); and
       ``(ii) subject to the requirements of chapter 8 of that 
     title.
       ``(d) Ratepayer Protection.--
       ``(1) Definitions.--In this subsection:
       ``(A) Affected facility.--The term `affected facility' 
     means an electric generation facility that uses a 
     conventional coal technology.
       ``(B) Authorized rate.--The term `authorized rate' means a 
     rate charged for electricity generated by an affected 
     facility that is--
       ``(i) authorized by an appropriate regulatory agency; and
       ``(ii) based on, or calculated to recover, the reasonable 
     capital and operating costs of the generation.
       ``(C) Conventional coal technology.--The term `conventional 
     coal technology' means a

[[Page S4974]]

     technology for the generation of electricity that--
       ``(i) involves the combustion of coal in a boiler; and
       ``(ii) does not provide for the capture or sequestration of 
     carbon.
       ``(2) Protection.--
       ``(A) In general.--Subject to paragraph (3) and except as 
     provided in subparagraph (B), no owner or lessor of an 
     affected facility who sells, at wholesale or retail, any 
     electricity generated by the affected facility at an 
     authorized rate shall recover through the authorized rate, in 
     whole or in part, the cost of compliance with any Federal 
     greenhouse gas reduction requirement relating to emissions 
     from the affected facility.
       ``(B) Exception.--Subparagraph (A) shall not apply to an 
     owner or lessor of an affected facility if the appropriate 
     regulatory agency determines no feasible alternative exists 
     to the use of conventional coal technology by the affected 
     facility.
       ``(3) Applicability.--Paragraph (2)(A) shall apply to an 
     owner or lessor described in that paragraph only if--
       ``(A) the affected facility enters operation after January 
     1, 2009; and
       ``(B) the cost of compliance described in paragraph (2) is 
     incurred after the date of enactment of this title.

     ``SEC. 709. MERCURY EMISSION LIMITATIONS.

       ``(a) In General.--
       ``(1) Regulations.--
       ``(A) In general.--Not later than 1 year after the date of 
     enactment of this title, the Administrator shall promulgate 
     regulations to establish emission limitations for mercury 
     emissions by coal-fired electric generation facilities.
       ``(B) No exceedance of national limitation.--The 
     regulations shall ensure that the national limitation for 
     mercury emissions from each coal-fired electric generation 
     facility established under section 705(a)(4)(A) (and, to the 
     maximum extent practicable, the goal described in section 
     705(a)(4)(B)) is not exceeded.
       ``(C) Emission limitations for 2012 and thereafter.--In 
     carrying out subparagraph (A), for calendar year 2012 and 
     each calendar year thereafter, the Administrator shall not--
       ``(i) subject to subsections (e) and (f) of section 112, 
     establish limitations on emissions of mercury from coal-fired 
     electric generation facilities that allow emissions in excess 
     of 2.48 grams of mercury per 1000 megawatt hours; or
       ``(ii) differentiate between facilities that burn different 
     types of coal.
       ``(2) Annual review and determination.--
       ``(A) In general.--Not later than April 1 of each year, the 
     Administrator shall--
       ``(i) review the total mercury emissions during the 2 
     preceding calendar years from electric generation facilities 
     located in all States; and
       ``(ii) determine whether, during the 2 preceding calendar 
     years, the total mercury emissions from facilities described 
     in clause (i) exceeded the national limitation for mercury 
     emissions established under section 705(a)(4)(A).
       ``(B) Exceedance of national limitation.--If the 
     Administrator determines under subparagraph (A)(ii) that, 
     during the 2 preceding calendar years, the total mercury 
     emissions from facilities described in subparagraph (A)(i) 
     exceeded the national limitation for mercury emissions 
     established under section 705(a)(4)(A), the Administrator 
     shall, not later than 1 year after the date of the 
     determination, revise the regulations promulgated under 
     paragraph (1) to reduce the emission rates specified in the 
     regulations as necessary to ensure that the national 
     limitation for mercury emissions is not exceeded in any 
     future year.
       ``(3) Compliance flexibility.--
       ``(A) In general.--Each coal-fired electric generation 
     facility subject to an emission limitation under this section 
     shall be in compliance with that limitation if that 
     limitation is greater than or equal to the quotient obtained 
     by dividing--
       ``(i) the total mercury emissions of the coal-fired 
     electric generation facility during each 30-day period; by
       ``(ii) the quantity of electricity generated by the coal-
     fired electric generation facility during that period.
       ``(B) More than 1 unit at a facility.--In any case in which 
     more than 1 coal-fired electricity generating unit at a coal-
     fired electric generation facility subject to an emission 
     limitation under this section was operated in 1999 under 
     common ownership or control, compliance with the emission 
     limitation may be determined by averaging the emission rates 
     of all coal-fired electricity generating units at the 
     electric generation facility during each 30-day period.
       ``(b) Prevention of Re-Release.--
       ``(1) Regulations.--Not later than July 1, 2008, the 
     Administrator shall promulgate regulations to ensure that any 
     mercury captured or recovered by emission controls installed 
     at an electric generation facility is not re-released into 
     the environment.
       ``(2) Required elements.--The regulations shall require--
       ``(A) daily covers on all active waste disposal units, and 
     permanent covers on all inactive waste disposal units, to 
     prevent the release of mercury into the air;
       ``(B) monitoring of groundwater to ensure that mercury or 
     mercury compounds do not migrate from the waste disposal 
     unit;
       ``(C) waste disposal siting requirements and cleanup 
     requirements to protect groundwater and surface water 
     resources;
       ``(D) elimination of agricultural application of coal 
     combustion wastes; and
       ``(E) appropriate limitations on mercury emissions from 
     sources or processes that reprocess or use coal combustion 
     waste, including manufacturers of wallboard and cement.
       ``(c) New Affected Unit Limitation.--An affected unit that 
     enters operation on or after the date of enactment of this 
     title shall achieve, on an annual average basis, a mercury 
     emission rate of not more than 2.48 grams of mercury per 
     1,000 megawatt hours, regardless of the type of coal used at 
     the affected unit.

     ``SEC. 710. OTHER HAZARDOUS AIR POLLUTANTS.

       ``(a) In General.--Not later than January 1, 2008, the 
     Administrator shall issue to owners and operators of coal-
     fired electric generation facilities requests for information 
     under section 114 that are of sufficient scope to generate 
     data sufficient to support issuance of standards under 
     section 112(d) for hazardous air pollutants other than 
     mercury emitted by coal-fired electric generation facilities.
       ``(b) Deadline for Submission of Requested Information.--
     The Administrator shall require each recipient of a request 
     for information described in subsection (a) to submit the 
     requested data not later than 180 days after the date of the 
     request.
       ``(c) Promulgation of Emission Standards.--The 
     Administrator shall--
       ``(1) not later than January 1, 2008, propose emission 
     standards under section 112(d) for hazardous air pollutants 
     other than mercury; and
       ``(2) not later than January 1, 2009, promulgate emission 
     standards under section 112(d) for hazardous air pollutants 
     other than mercury.
       ``(d) Prohibition on Excess Emissions.--It shall be 
     unlawful for an electric generation facility subject to 
     standards for hazardous air pollutants other than mercury 
     promulgated under subsection (c) to emit, after December 31, 
     2010, any such pollutant in excess of the standards.
       ``(e) Effect on Other Law.--Nothing in this section or 
     section 709 affects any requirement of subsection (e), 
     (f)(2), or (n)(1)(A) of section 112, except that the emission 
     limitations established by regulations promulgated under this 
     section shall be deemed to represent the maximum achievable 
     control technology for mercury emissions from electricity 
     generating units under section 112(d).

     ``SEC. 711. EMISSION STANDARDS FOR AFFECTED UNITS.

       ``(a) Definition of Affected Unit.--In this subsection, the 
     term `affected unit' means a unit that--
       ``(1) is designed and intended to provide electricity at a 
     unit capacity factor of at least 60 percent; and
       ``(2) begins operation after December 31, 2011.
       ``(b) Initial Standard.--
       ``(1) In general.--Not later than 2 years after the date of 
     enactment of this title, the Administrator shall promulgate 
     regulations requiring each affected unit to meet the standard 
     described in paragraph (2).
       ``(2) Standard.--Beginning on December 31, 2015, an 
     affected unit shall meet a global warming pollution emission 
     standard that is not higher than the emission rate of a new 
     combined cycle natural gas generating unit.
       ``(3) More stringent requirements.--For the period 
     beginning on January 1 of the calendar year following the 
     effective date of the regulations promulgated pursuant to 
     paragraph (1) and ending on December 31, 2029, the 
     Administrator may increase the stringency of the global 
     warming pollution emission standard described in paragraph 
     (2) with respect to affected units as the Administrator 
     determines to be appropriate to ensure a reduction in the 
     emission rate of global warming pollutants of at least 90 
     percent from each affected unit.
       ``(c) Final Standard.--Not later than December 31, 2030, 
     the Administrator shall require each unit that is designed 
     and intended to provide electricity at a unit capacity factor 
     of at least 60 percent, regardless of the date on which the 
     unit entered operation, to meet the applicable emission 
     standard under subsection (b).
       ``(d) Adjustment of Requirements.--If the Academy 
     determines, pursuant to section 705(e), that a requirement of 
     this section is or will be technologically infeasible at the 
     time at which the requirement becomes effective, the 
     Administrator, by regulation, may adjust or delay the 
     effective date of the requirement as the Administrator 
     determines to be necessary, taking into consideration the 
     determination of the Academy.

     ``SEC. 712. LOW-CARBON GENERATION REQUIREMENT.

       ``(a) Definitions.--In this section:
       ``(1) Base quantity of electricity.--The term `base 
     quantity of electricity' means the total quantity of 
     electricity produced for sale by a covered generator during 
     the calendar year immediately preceding a compliance year 
     from--
       ``(A) coal;
       ``(B) petroleum coke;
       ``(C) lignite; or
       ``(D) any combination of the fuels described in 
     subparagraphs (A) through (C).
       ``(2) Covered generator.--The term `covered generator' 
     means an electric generation facility that--
       ``(A) has a rated capacity of 25 megawatts or more; and

[[Page S4975]]

       ``(B) has an annual fuel input at least 50 percent of which 
     is provided by--
       ``(i) coal;
       ``(ii) petroleum coke;
       ``(iii) lignite; or
       ``(iv) any combination of the fuels described in clauses 
     (i) through (iii).
       ``(3) Low-carbon generation.--The term `low-carbon 
     generation' means electric energy generated from an electric 
     generation facility at least 50 percent of the annual fuel 
     input of which, in any year--
       ``(A) is provided by--
       ``(i) coal;
       ``(ii) petroleum coke;
       ``(iii) lignite; or
       ``(iv) any combination of the fuels described in clauses 
     (i) through (iii); and
       ``(B) results in an emission rate into the atmosphere of 
     not more than 250 pounds of carbon dioxide per megawatt-hour 
     (after adjustment for any carbon dioxide emitted from the 
     electric generation facility that is geologically sequestered 
     in a geological repository approved by the Administrator 
     pursuant to section 713).
       ``(4) Program.--The term `program' means the low-carbon 
     generation credit trading program established under 
     subsection (d)(1).
       ``(b) Requirement.--
       ``(1) Calendar years 2015 through 2020.--Of the base 
     quantity of electricity produced for sale by a covered 
     generator for a calendar year, the covered generator shall 
     provide a minimum percentage of that base quantity of 
     electricity for the calendar year from low-carbon generation, 
     as specified in the following table:
``Calendar year:                             Minimum annual percentage:
2015................................................................0.5
2016................................................................1.0
2017................................................................2.0
2018................................................................3.0
2019................................................................4.0
2020................................................................5.0

       ``(2) Calendar years 2021 through 2025.--For each of 
     calendar years 2021 through 2025, the Administrator may 
     increase the minimum percentage of the base quantity of 
     electricity from low-carbon generation described in paragraph 
     (1) by not more than 2 percentage points from the preceding 
     year, as the Administrator determines to be necessary to 
     achieve the emission reduction goal described in section 
     705(a)(3).
       ``(3) Calendar years 2026 through 2030.--For each of 
     calendar years 2026 through 2030, the Administrator may 
     increase the minimum percentage of the base quantity of 
     electricity from low-carbon generation described in paragraph 
     (1) by not more than 3 percentage points from the preceding 
     year, as the Administrator determines to be necessary to 
     achieve the emission reduction goal described in section 
     705(a)(3).
       ``(c) Means of Compliance.--An owner or operator of a 
     covered generator shall comply with subsection (b) by--
       ``(1) generating electric energy using low-carbon 
     generation;
       ``(2) purchasing electric energy generated by low-carbon 
     generation;
       ``(3) purchasing low-carbon generation credits issued under 
     the program; or
       ``(4) any combination of the actions described in 
     paragraphs (1) through (3).
       ``(d) Low-Carbon Generation Credit Trading Program.--
       ``(1) In general.--Not later than January 1, 2008, the 
     Administrator shall establish, by regulation, after notice 
     and opportunity for comment, a low-carbon generation trading 
     program to permit an owner or operator of a covered generator 
     that does not generate or purchase enough electric energy 
     from low-carbon generation to comply with subsection (b) to 
     achieve that compliance by purchasing sufficient low-carbon 
     generation credits.
       ``(2) Requirements.--In carrying out the program, the 
     Administrator shall--
       ``(A) issue to producers of low-carbon generation, on a 
     quarterly basis, a single low-carbon generation credit for 
     each kilowatt hour of low-carbon generation sold during the 
     preceding quarter; and
       ``(B) ensure that a kilowatt hour, including the associated 
     low-carbon generation credit, shall be used only once for 
     purposes of compliance with subsection (b).
       ``(e) Enforcement.--An owner or operator of a covered 
     generator that fails to comply with subsection (b) shall be 
     subject to a civil penalty in an amount equal to the product 
     obtained by multiplying--
       ``(1) the number of kilowatt-hours of electric energy sold 
     to electric consumers in violation of subsection (b); and
       ``(2) the greater of--
       ``(A) 2.5 cents (as adjusted under subsection (g)); or
       ``(B) 200 percent of the average market value of those low-
     carbon generation credits during the year in which the 
     violation occurred.
       ``(f) Exemption.--This section shall not apply, for any 
     calendar year, to an owner or operator of a covered generator 
     that sold less than 40,000 megawatt-hours of electric energy 
     produced from covered generators during the preceding 
     calendar year.
       ``(g) Inflation Adjustment.--Not later than December 31, 
     2008, and annually thereafter, the Administrator shall adjust 
     the amount of the civil penalty for each kilowatt-hour 
     calculated under subsection (e)(2) to reflect changes for the 
     12-month period ending on the preceding November 30 in the 
     Consumer Price Index for All Urban Consumers published by the 
     Bureau of Labor Statistics of the Department of Labor.
       ``(h) Technological Infeasibility.--If the Academy 
     determines, pursuant to section 705(e), that the schedule for 
     compliance described in subsection (b) is or will be 
     technologically infeasible for covered generators to meet, 
     the Administrator, by regulation, may adjust the schedule as 
     the Administrator determines to be necessary, taking into 
     consideration the determination of the Academy.
       ``(i) Termination of Authority.--This section and the 
     authority provided by this section shall terminate on 
     December 31, 2030.

     ``SEC. 713. GEOLOGICAL DISPOSAL OF GLOBAL WARMING POLLUTANTS.

       ``(a) Geological Carbon Dioxide Disposal Deployment 
     Projects.--
       ``(1) In general.--The Administrator shall establish a 
     competitive grant program to provide grants to 5 entities for 
     the deployment of projects to geologically dispose of carbon 
     dioxide (referred to in this subsection as `geological 
     disposal deployment projects').
       ``(2) Location.--Each geological disposal deployment 
     project shall be conducted in a geologically distinct 
     location in order to demonstrate the suitability of a variety 
     of geological structures for carbon dioxide disposal.
       ``(3) Components.--Each geological disposal deployment 
     project shall include an analysis of--
       ``(A) mechanisms for trapping the carbon dioxide to be 
     geologically disposed;
       ``(B) techniques for monitoring the geologically disposed 
     carbon dioxide;
       ``(C) public response to the geological disposal deployment 
     project; and
       ``(D) the permanency of carbon dioxide storage in 
     geological reservoirs.
       ``(4) Requirements.--
       ``(A) In general.--Not later than 2 years after the date of 
     enactment of this title, the Administrator shall establish--
       ``(i) appropriate conditions for environmental protection 
     with respect to geological disposal deployment projects to 
     protect public health and the environment, including--

       ``(I) site characterization and selection;
       ``(II) geomechanical, geochemical, and hydrogeological 
     simulation;
       ``(III) risk assessment;
       ``(IV) mitigation and remediation protocols;
       ``(V) the issuance of permits for test, injection, and 
     monitoring wells;
       ``(VI) specifications for the drilling, construction, and 
     maintenance of wells;
       ``(VII) ownership of subsurface rights and pore space;
       ``(VIII) transportation pipeline specifications;
       ``(IX) the allowed composition of injected matter;
       ``(X) testing, monitoring, measurement, and verification 
     for the entire chain of operations, beginning with the point 
     of capture of carbon dioxide to a storage site;
       ``(XI) closure and decommissioning procedures;
       ``(XII) transportation pipeline siting; and
       ``(XIII) short- and long-term legal responsibility and 
     indemnification procedures for storage sites; and

       ``(ii) requirements relating to applications for grants 
     under this subsection.
       ``(B) Rulemaking.--The establishment of requirements under 
     subparagraph (A) shall not require a rulemaking.
       ``(C) Minimum requirements.--At a minimum, each application 
     for a grant under this subsection shall include--
       ``(i) a description of the geological disposal deployment 
     project proposed in the application;
       ``(ii) an estimate of the quantity of carbon dioxide to be 
     geologically disposed over the life of the geological 
     disposal deployment project; and
       ``(iii) a plan to collect and disseminate data relating to 
     each geological disposal deployment project to be funded by 
     the grant.
       ``(5) Partners.--An applicant for a grant under this 
     subsection may carry out a geological disposal deployment 
     project under a pilot program in partnership with 1 or more 
     public or private entities.
       ``(6) Selection criteria.--In evaluating applications under 
     this subsection, the Administrator shall--
       ``(A) consider the previous experience of each applicant 
     with similar projects; and
       ``(B) give priority consideration to applications for 
     geological disposal deployment projects that--
       ``(i) offer the greatest geological diversity, as compared 
     to other geological disposal deployment projects that 
     received grants under this subsection;
       ``(ii) are located in closest proximity to a source of 
     carbon dioxide;
       ``(iii) make use of the most affordable source of carbon 
     dioxide;
       ``(iv) are expected to geologically dispose of--

       ``(I) the largest quantity of carbon dioxide; and
       ``(II) a minimum quantity of 1,000,000 tons of carbon 
     dioxide for each project carried out as part of the 
     demonstration project;

       ``(v) are combined with demonstrations of advanced coal 
     electricity generation technologies;
       ``(vi) demonstrate the greatest commitment on the part of 
     the applicant to ensure funding for the proposed 
     demonstration project and the greatest likelihood that the 
     demonstration project will be maintained or expanded after 
     Federal assistance under this subsection is completed; and
       ``(vii) minimize any adverse environmental effects from the 
     project.
       ``(7) Period of grants.--

[[Page S4976]]

       ``(A) In general.--A geological disposal deployment project 
     funded by a grant under this subsection shall begin 
     construction not later than 3 years after the date on which 
     the grant is provided.
       ``(B) Term.--The Administrator shall not provide grant 
     funds to any applicant under this subsection for a period of 
     more than 5 years.
       ``(8) Transfer of information and knowledge.--The 
     Administrator shall establish mechanisms to ensure that the 
     information and knowledge gained by participants in the 
     program are published and disseminated, including to other 
     applicants that submitted applications for a grant under this 
     subsection.
       ``(9) Schedule.--
       ``(A) Publication.--Not later than 180 days after the date 
     of enactment of this title, the Administrator shall publish 
     in the Federal Register, and elsewhere as appropriate, a 
     request for applications to carry out geological disposal 
     deployment projects.
       ``(B) Date for applications.--An application for a grant 
     under this subsection shall be submitted not later than 180 
     days after the date of publication of the request under 
     subparagraph (A).
       ``(C) Selection.--After the date by which applications for 
     grants are required to be submitted under subparagraph (B), 
     the Administrator, in a timely manner, shall select, after 
     peer review and based on the criteria under paragraph (6), 
     those geological disposal deployment projects to be provided 
     a grant under this subsection.
       ``(b) Interim Standards.--Not later than 3 years after the 
     date of enactment of this title, the Administrator, in 
     consultation with the Secretary of Energy, shall, by 
     regulation, establish interim geological carbon dioxide 
     disposal standards that address--
       ``(1) site selection;
       ``(2) permitting processes;
       ``(3) monitoring requirements;
       ``(4) public participation; and
       ``(5) such other issues as the Administrator and the 
     Secretary of Energy determine to be appropriate.
       ``(c) Final Standards.--Not later than 6 years after the 
     date of enactment of this title, taking into consideration 
     the results of geological disposal deployment projects 
     carried out under subsection (a), the Administrator, by 
     regulation, shall establish final geological carbon dioxide 
     disposal standards.
       ``(d) Considerations.--In developing standards under 
     subsections (b) and (c), the Administrator shall consider the 
     experience in the United States in regulating--
       ``(1) underground injection of waste;
       ``(2) enhanced oil recovery;
       ``(3) short-term storage of natural gas; and
       ``(4) long-term waste storage.
       ``(e) Termination of Authority.--This section and the 
     authority provided by this section shall terminate on 
     December 31, 2030.

     ``SEC. 714. ENERGY EFFICIENCY PERFORMANCE STANDARD.

       ``(a) Definitions.--In this section:
       ``(1) Electricity savings.--
       ``(A) In general.--The term `electricity savings' means 
     reductions in end-use electricity consumption relative to 
     consumption by the same customer or at the same new or 
     existing facility in a given year, as defined in regulations 
     promulgated by the Administrator under subsection (e).
       ``(B) Inclusions.--The term `electricity savings' includes 
     savings achieved as a result of--
       ``(i) installation of energy-saving technologies and 
     devices; and
       ``(ii) the use of combined heat and power systems, fuel 
     cells, or any other technology identified by the 
     Administrator that recaptures or generates energy solely for 
     onsite customer use.
       ``(C) Exclusion.--The term `electricity savings' does not 
     include savings from measures that would likely be adopted in 
     the absence of energy-efficiency programs, as determined by 
     the Administrator.
       ``(2) Retail electricity sales.--The term `retail 
     electricity sales' means the total quantity of electric 
     energy sold by a retail electricity supplier to retail 
     customers during the most recent calendar year for which that 
     information is available.
       ``(3) Retail electricity supplier.--The term `retail 
     electricity supplier' means a distribution or integrated 
     utility, or an independent company or entity, that sells 
     electric energy to consumers.
       ``(b) Energy Efficiency Performance Standard.--Each retail 
     electricity supplier shall implement programs and measures to 
     achieve improvements in energy efficiency and peak load 
     reduction, as verified by the Administrator.
       ``(c) Targets.--For calendar year 2008 and each calendar 
     year thereafter, the Administrator shall ensure that retail 
     electric suppliers annually achieve electricity savings and 
     reduce peak power demand and electricity use by retail 
     customers by a percentage that is not less than the 
     applicable target percentage specified in the following 
     table:''


------------------------------------------------------------------------
                                   Reduction in peak     Reduction in
          Calendar Year                 demand          electricity use
------------------------------------------------------------------------
2008............................  .25 percent.......  .25 percent
2009............................  .75 percent.......  .75 percent
2010............................  1.75 percent......  1.5 percent
2011............................  2.75 percent......  2.25 percent
2012............................  3.75 percent......  3.0 percent
2013............................  4.75 percent......  3.75 percent
2014............................  5.75 percent......  4.5 percent
2015............................  6.75 percent......  5.25 percent
2016............................  7.75 percent......  6.0 percent
2017............................  8.75 percent......  6.75 percent
2018............................  9.75 percent......  7.5 percent
2019............................  10.75 percent.....  8.25 percent
2020 and each calendar year       11.75 percent.....  9.0 percent
 thereafter.
------------------------------------------------------------------------

       ``(d) Beginning Date.--For the purpose of meeting the 
     targets established under subsection (c), electricity savings 
     shall be calculated based on the sum of--
       ``(1) electricity savings realized as a result of actions 
     taken by the retail electric supplier during the specified 
     calendar year; and
       ``(2) cumulative electricity savings realized as a result 
     of electricity savings achieved in all preceding calendar 
     years (beginning with calendar year 2006).
       ``(e) Implementing Regulations.--
       ``(1) In general.--Not later than 1 year after the date of 
     enactment of this title, the Administrator shall promulgate 
     regulations to implement the targets established under 
     subsection (c).
       ``(2) Requirements.--The regulations shall establish--
       ``(A) a national credit system permitting credits to be 
     awarded, bought, sold, or traded by and among retail 
     electricity suppliers;
       ``(B) a fee equivalent to not less than 4 cents per 
     kilowatt hour for retail energy suppliers that do not meet 
     the targets established under subsection (c); and
       ``(C) standards for monitoring and verification of 
     electricity use and demand savings reported by the retail 
     electricity suppliers.
       ``(3) Consideration of transmission and distribution 
     efficiency.--In developing regulations under this subsection, 
     the Administrator shall consider whether electricity savings, 
     in whole or part, achieved by retail electricity suppliers by 
     improving the efficiency of electric distribution and use 
     should be eligible for credits established under this 
     section.
       ``(f) Compliance With State Law.--Nothing in this section 
     supersedes or otherwise affects any State or local law 
     requiring, or otherwise relating to, reductions in total 
     annual electricity consumption or peak power consumption by 
     electric consumers to the extent that the State or local law 
     requires more stringent reductions than the reductions 
     required under this section.
       ``(g) Voluntary Participation.--The Administrator may--
       ``(1) pursuant to the regulations promulgated under 
     subsection (e)(1), issue a credit to any entity that is not a 
     retail electric supplier if the entity implements electricity 
     savings; and
       ``(2) in a case in which an entity described in paragraph 
     (1) is a nonprofit or educational organization, provide to 
     the entity 1 or more grants in lieu of a credit.

     ``SEC. 715. RENEWABLE PORTFOLIO STANDARD.

       ``(a) Renewable Energy.--
       ``(1) In general.--The Administrator, in consultation with 
     the Secretary of Energy, shall promulgate regulations 
     defining the types and sources of renewable energy generation 
     that may be carried out in accordance with this section.
       ``(2) Inclusions.--In promulgating regulations under 
     paragraph (1), the Administrator shall include of all types 
     of renewable energy (as defined in section 203(b) of the 
     Energy Policy Act of 2005 (42 U.S.C. 15852(b))) other than 
     energy generated from--
       ``(A) municipal solid waste;
       ``(B) wood contaminated with plastics or metals; or
       ``(C) tires.
       ``(b) Renewable Energy Requirement.--Of the base quantity 
     of electricity sold by each retail electric supplier to 
     electric consumers during a calendar year, the quantity 
     generated by renewable energy sources shall be not less than 
     the following percentages:''

``Calendar year:                             Minimum annual percentage:
2008 through 2009.....................................................5
2010 through 2014....................................................10
2015 through 2019....................................................15
2020 and subsequent years............................................20

       ``(c) Renewable Energy Credit Program.--Not later than 1 
     year after the date of enactment of this title, the 
     Administrator shall establish--
       ``(1) a program to issue, establish the value of, monitor 
     the sale or exchange of, and track renewable energy credits; 
     and
       ``(2) penalties for any retail electric supplier that does 
     not comply with this section.
       ``(d) Prohibition on Double Counting.--A renewable energy 
     credit issued under subsection (c)--
       ``(1) may be counted toward meeting the requirements of 
     subsection (b) only once; and
       ``(2) shall vest with the owner of the system or facility 
     that generates the renewable energy that is covered by the 
     renewable energy credit, unless the owner explicitly 
     transfers the renewable energy credit.
       ``(e) Sale Under PURPA Contract.--If the Administrator, 
     after consultation with the Secretary of Energy, determines 
     that a renewable energy generator is selling electricity to 
     comply with this section to a retail electric supplier under 
     a contract subject to section 210 of the Public Utilities 
     Regulatory Policies Act of 1978 (16 U.S.C. 824a-3), the 
     retail electric supplier shall be treated as the generator of 
     the electric energy for the purposes of this title for the 
     duration of the contract.

[[Page S4977]]

       ``(f) State Programs.--Nothing in this section precludes 
     any State from requiring additional renewable energy 
     generation under any State renewable energy program.
       ``(g) Voluntary Participation.--The Administrator may issue 
     a renewable energy credit pursuant to subsection (c) to any 
     entity that is not subject to this section only if the entity 
     applying for the renewable energy credit meets the terms and 
     conditions of this section to the same extent as retail 
     electric suppliers subject to this section.

     ``SEC. 716. STANDARDS TO ACCOUNT FOR BIOLOGICAL SEQUESTRATION 
                   OF CARBON.

       ``(a) In General.--Not later than 2 years after the date of 
     enactment of title, the Secretary of Agriculture, with the 
     concurrence of the Administrator, shall establish standards 
     for accrediting certified reductions in the emission of 
     carbon dioxide through above-ground and below-ground 
     biological sequestration activities.
       ``(b) Requirements.--The standards shall include--
       ``(1) a national biological carbon storage baseline or 
     inventory; and
       ``(2) measurement, monitoring, and verification guidelines 
     based on--
       ``(A) measurement of increases in carbon storage in excess 
     of the carbon storage that would have occurred in the absence 
     of a new management practice designed to achieve biological 
     sequestration of carbon;
       ``(B) comprehensive carbon accounting that--
       ``(i) reflects sustained net increases in carbon 
     reservoirs; and
       ``(ii) takes into account any carbon emissions resulting 
     from disturbance of carbon reservoirs in existence as of the 
     date of commencement of any new management practice designed 
     to achieve biological sequestration of carbon;
       ``(C) adjustments to account for--
       ``(i) emissions of carbon that may result at other 
     locations as a result of the impact of the new biological 
     sequestration management practice on timber supplies; or
       ``(ii) potential displacement of carbon emissions to other 
     land owned by the entity that carries out the new biological 
     sequestration management practice; and
       ``(D) adjustments to reflect the expected carbon storage 
     over various time periods, taking into account the likely 
     duration of the storage of carbon in a biological reservoir.
       ``(c) Updating of Standards.--Not later than 3 years after 
     the date of establishment of the standards under subsection 
     (a), and every 3 years thereafter, the Secretary of 
     Agriculture shall update the standards to take into 
     consideration the most recent scientific information.

     ``SEC. 717. EFFECT OF FAILURE TO PROMULGATE REGULATIONS.

       ``If the Administrator fails to promulgate regulations to 
     implement and enforce the limitations specified in section 
     705--
       ``(1)(A) each electric generation facility shall achieve, 
     not later than January 1, 2010, an annual quantity of 
     emissions that is less than or equal to--
       ``(i) in the case of nitrogen oxides, 15 percent of the 
     annual emissions by a similar electric generation facility 
     that has no controls for emissions of nitrogen oxides; and
       ``(ii) in the case of global warming pollutants, 75 percent 
     of the annual emissions by a similar electric generation 
     facility that has no controls for emissions of global warming 
     pollutants; and
       ``(B) each electric generation facility that does not use 
     natural gas as the primary combustion fuel shall achieve, not 
     later than January 1, 2010, an annual quantity of emissions 
     that is less than or equal to--
       ``(i) in the case of sulfur dioxide, 5 percent of the 
     annual emissions by a similar electric generation facility 
     that has no controls for emissions of sulfur dioxide; and
       ``(ii) in the case of mercury, 10 percent of the annual 
     emissions by a similar electric generation facility that has 
     no controls included specifically for the purpose of 
     controlling emissions of mercury; and
       ``(2) the applicable permit under this Act for each 
     electric generation facility shall be deemed to incorporate a 
     requirement for achievement of the reduced levels of 
     emissions specified in paragraph (1).

     ``SEC. 718. PROHIBITIONS.

       ``It shall be unlawful--
       ``(1) for the owner or operator of any electric generation 
     facility--
       ``(A) to operate the electric generation facility in 
     noncompliance with the requirements of this title (including 
     any regulations implementing this title);
       ``(B) to fail to submit by the required date any emission 
     allowances, or pay any penalty, for which the owner or 
     operator is liable under section 706;
       ``(C) to fail to provide and comply with any plan to offset 
     excess emissions required under section 706(f); or
       ``(D) to emit mercury in excess of the emission limitations 
     established under section 709; or
       ``(2) for any person to hold, use, or transfer any emission 
     allowance allocated under this title except in accordance 
     with regulations promulgated by the Administrator.

     ``SEC. 719. MODERNIZATION OF ELECTRIC GENERATION FACILITIES.

       ``(a) In General.--Beginning on the later of January 1, 
     2015, or the date that is 40 years after the date on which 
     the electric generation facility commences operation, each 
     electric generation facility shall be subject to emission 
     limitations reflecting the application of best available 
     control technology on a new major source of a similar size 
     and type (as determined by the Administrator) as determined 
     in accordance with the procedures specified in part C of 
     title I.
       ``(b) Additional Requirements.--The requirements of this 
     section shall be in addition to the other requirements of 
     this title.

     ``SEC. 720. PARAMOUNT INTEREST WAIVER.

       ``(a) In General.--If the President determines that a 
     national security emergency exists and, in light of 
     information that was not available as of the date of 
     enactment of this title, that it is in the paramount interest 
     of the United States to modify any requirement under this 
     title to minimize the effects of the emergency, the 
     President, after opportunity for notice and public comment, 
     may temporarily adjust, suspend, or waive any regulation 
     promulgated pursuant to this title to achieve that 
     minimization.
       ``(b) Consultation.--In making an emergency determination 
     under subsection (a), the President, to the maximum extent 
     practicable, shall consult with and take into consideration 
     any advice received from--
       ``(1) the Academy;
       ``(2) the Secretary of Energy; or
       ``(3) the Administrator.
       ``(c) Judicial Review.--An emergency determination under 
     subsection (a) shall be subject to judicial review under 
     section 307.

     ``SEC. 721. RELATIONSHIP TO OTHER LAW.

       ``(a) In General.--Except as expressly provided in this 
     title, nothing in this title--
       ``(1) limits or otherwise affects the application of any 
     other provision of this Act; or
       ``(2) precludes a State from adopting and enforcing any 
     requirement for the control of emissions of air pollutants 
     that is more stringent than the requirements imposed under 
     this title.
       ``(b) Regional Seasonal Emission Controls.--Nothing in this 
     title affects any regional seasonal emission control for 
     nitrogen oxides established by the Administrator or a State 
     under title I.''.
       (b) Conforming Amendment.--Section 412(a) of the Clean Air 
     Act (42 U.S.C. 7651k(a)) is amended in the first sentence by 
     striking ``opacity'' and inserting ``mercury, opacity,''.

     SEC. 3. SAVINGS CLAUSE.

       Section 193 of the Clean Air Act (42 U.S.C. 7515) is 
     amended by striking ``date of the enactment of the Clean Air 
     Act Amendments of 1990'' each place it appears and inserting 
     ``date of enactment of the Clean Power Act of 2007''.

     SEC. 4. ACID PRECIPITATION RESEARCH PROGRAM.

       Section 103(j) of the Clean Air Act (42 U.S.C. 7403(j)) is 
     amended--
       (1) in paragraph (3)--
       (A) in subparagraph (F)(i), by striking ``effects; and'' 
     and inserting ``effects, including an assessment of--

       ``(I) acid-neutralizing capacity; and
       ``(II) changes in the number of water bodies in the 
     sensitive ecosystems referred to in subparagraph (G)(ii) with 
     an acid-neutralizing capacity greater than zero; and''; and

       (B) by adding at the end the following:
       ``(G) Sensitive ecosystems.--
       ``(i) In general.--Beginning in 2008, and every 4 years 
     thereafter, the report under subparagraph (E) shall include--

       ``(I) an identification of environmental objectives 
     necessary to be achieved (and related indicators to be used 
     in measuring achievement of the objectives) to adequately 
     protect and restore sensitive ecosystems; and
       ``(II) an assessment of the status and trends of the 
     environmental objectives and indicators identified in 
     preceding reports under this paragraph.

       ``(ii) Sensitive ecosystems to be addressed.--Sensitive 
     ecosystems to be addressed under clause (i) include--

       ``(I) the Adirondack Mountains, mid-Appalachian Mountains, 
     Rocky Mountains, and southern Blue Ridge Mountains;
       ``(II) the Great Lakes, Lake Champlain, Long Island Sound, 
     and the Chesapeake Bay; and
       ``(III) other sensitive ecosystems, as determined by the 
     Administrator.

       ``(H) Acid deposition standards.--Beginning in 2008, and 
     every 4 years thereafter, the report under subparagraph (E) 
     shall include a revision of the report under section 404 of 
     Public Law 101-549 (42 U.S.C. 7651 note) that includes a 
     reassessment of the health and chemistry of the lakes and 
     streams that were subjects of the original report under that 
     section.''; and
       (2) by adding at the end the following:
       ``(4) Protection of sensitive ecosystems.--
       ``(A) Determination.--Not later than December 31, 2014, the 
     Administrator, taking into consideration the findings and 
     recommendations of the report revisions under paragraph 
     (3)(H), shall determine whether emission reductions under 
     titles IV and VII are sufficient to--
       ``(i) achieve the necessary reductions identified under 
     paragraph (3)(F); and
       ``(ii) ensure achievement of the environmental objectives 
     identified under paragraph (3)(G).
       ``(B) Regulations.--
       ``(i) In general.--Not later than 2 years after the 
     Administrator makes a determination under subparagraph (A) 
     that emission reductions are not sufficient, the 
     Administrator shall promulgate regulations to protect the 
     sensitive ecosystems referred to in paragraph (3)(G)(ii).
       ``(ii) Contents.--Regulations under clause (i) shall 
     include modifications to--

[[Page S4978]]

       ``(I) provisions relating to nitrogen oxide and sulfur 
     dioxide emission reductions;
       ``(II) provisions relating to allocations of nitrogen oxide 
     and sulfur dioxide allowances; and
       ``(III) such other provisions as the Administrator 
     determines to be necessary.''.

     SEC. 5. AUTHORIZATION OF APPROPRIATIONS FOR DEPOSITION 
                   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 2008 through 2017--
       (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.

     SEC. 6. TECHNICAL AMENDMENTS.

       Title IV of the Clean Air Act (relating to noise pollution) 
     (42 U.S.C. 7641 et seq.)--
       (1) is amended by redesignating sections 401 through 403 as 
     sections 801 through 803, respectively; and
       (2) is redesignated as title VIII and moved to appear at 
     the end of that Act.

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