[Congressional Record (Bound Edition), Volume 151 (2005), Part 1]
[Extensions of Remarks]
[Pages 800-801]
[From the U.S. Government Publishing Office, www.gpo.gov]




                      NO ATTAINMENT--NO TRADE BILL

                                 ______
                                 

                          HON. JAMES P. MORAN

                              of virginia

                    in the house of representatives

                       Tuesday, January 25, 2005

  Mr. MORAN of Virginia. Mr. Speaker, today I am introducing the ``No 
Attainment--No Trade bill.''
  This legislation amends the Clean Air Act to prohibit powerplants and 
other major point sources of nitrogen oxide (NOx) pollution 
that are in an ozone non-attainment area from participating in EPA's 
emission trading program.
  In 1990 Congress passed amendments to the Clean Air Act to deal with 
the issue of acid rain deposition.
  Harmful acid rain was destroying our buildings, personal property and 
turning freshwater lakes into dead zones.
  The new law established an innovative emission trading program to 
reduce the precursors of acid rain, harmful nitrogen oxides and sulphur 
dioxides emitted by coal-burning powerplants and major industrial 
boilers.
  Since its establishment, the trading program has worked extremely 
well, better than even

[[Page 801]]

proponents of the 1990 amendment to the Clean Air Act ever expected.
  While nitrogen and sulphur dioxides have been reduced, and reduced by 
millions of tons, an unanticipated new wrinkle has emerged as States 
and localities work to reduce urban smog and bring ozone non-attainment 
areas into compliance with other requirements in the Clean Air Act.
  States and localities are bumping into the emission trading program 
for nitrogen oxides.
  Not only are nitrogen oxides the precursors of acid rain, they also 
mix with hydro-carbons and form unhealthy ground level ozone.
  Giving power plants in an ozone non-attainment area the authority to 
buy a credit from elsewhere and avoid nitrogen oxide reductions may 
help EPA meet its national acid rain reduction goals, but it can 
frustrate state and local efforts to lower ozone and urban smog and be 
in compliance with the Clean Air Act.
  I speak from experience.
  Just across the Potomac River in Alexandria we have a power plant 
operated by Mirant that was in violation of its operating permit.
  Aptly named the ``Potomac River Plant'', the coal-fired facility was 
built in 1949.
  Because it was approaching the end of its useful life expectancy, 
Congress agreed to exempt it and other older plants from the tougher 
modern emission requirements under the Clean Air Act.
  The exemption was probably a mistake.
  Unfortunately, too many utilities found it cheaper to keep these 
antiquated and dirty plants operating beyond their useful life than 
replace them with costlier but cleaner power plants.
  Had this region replaced all of exempt power plants with modern 
facilities, this region might be in compliance with the Clean Air Act 
ozone standards.
  Instead, this region has had greater challenge to bring this region 
into compliance and imposed only modest emission reductions on the 
Potomac River Plant.
  This attainment plan faced a serious setback during the summer of 
2003 when the Potomac River Plant violated its clean air emission 
limits by more than 1,000 tons of nitrogen oxide, double the tonnage 
allowed under its permit.
  Initially, Mirant claimed it could come into compliance by purchasing 
credits of emission reductions from sources elsewhere, outside this 
region, to meet its emission reduction goal.
  ``Not so,'' said the Commonwealth of Virginia.
  The state's position, however, was on less than firm legal ground and 
it took extensive enforcement action and the threat of a state-
initiated lawsuit before an alternative remedy was agreed upon.
  I am pleased that the state held firm and was able to reach a 
settlement, that while not ideal, will reduce emissions at the Potomac 
River Plant and the other three local coal-fired plants operated by 
Mirant.
  The agreement will contribute substantially to reduce NOx 
emissions throughout the metropolitan Washington, D.C. region and bring 
it into compliance with the Clean Air Act.
  The legislation I am reintroducing today, however, is still 
necessary.
  It gives states the clear legal authority they need and discourages 
power plants from challenging state ozone implementation plans in 
court.
  This legislation will give other states the authority they need to 
block power plants in a non-attainment area from engaging in NOx 
emission trading and avoiding their responsibility to reduce ozone and 
urban smog.
  It makes no sense, to force this region, or the jurisdictions of any 
ozone non-attainment area, to rachet down nitrogen oxides from other 
sources, beyond what may be necessary, simply because a few large 
sources are able to buy their way out of compliance.
  It isn't fair, and it is not in anyone's best interest to do so.
  My legislation puts an end to it.
  It deserves consideration.

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