Sets forth requirements for the intrastate distribution of allowances among affected facilities (facilities with combustion units that serve an electricity generator with a minimum capacity of 25 megawatts) by a State or the Administrator.
Requires the Administrator to promulgate regulations: (1) authorizing allowances to be transferred among affected facilities or persons; and (2) for issuing and tracking the use and transfer of allowances. Permits unused allowances to be carried forward for subsequent years.
Requires the Administrator, for States for which the Administrator distributes allowances, to place ten percent of the total allowances in a new source reserve. Provides for the auctioning and sale of undistributed allowances in such reserve during 2000 through 2005. Distributes auction proceeds to affected sources in proportion to the number of allowances that would have been received but for the auction.
Authorizes the Administrator to terminate or limit allowances.
Makes it unlawful, after January 1, 2000, for: (1) the owner or operator of an affected facility to emit nitrogen oxides exceeding the amount permitted by allowances held by such facility; or (2) any person to hold, use, or transfer such allowances, except as provided under this Act.
Repeals the nitrogen oxides emission reduction program under the Clean Air Act.
Bars the use of an allowance before the calendar year for which the allowance is allocated.
(Sec. 5) Amends the Clean Air Act to require owners or operators of industrial facilities with a minimum capacity of 100 million British thermal units (mmBtus) per hour to install and operate continuous emission monitoring systems on affected units and quality assure data for sulfur dioxide, nitrogen oxides, opacity, and volumetric flow.
(Sec. 6) Imposes penalties for emissions in excess of allowances. Requires offsets of allowances in the calendar year following the one in which excess emissions occurred.
(Sec. 7) Decreases the amount of sulfur dioxide authorized to be emitted under an existing allowance program for 2005 and subsequent years.
(Sec. 8) Requires the Administrator to report to the Congress on objectives for scientifically credible environmental indicators, including acid neutralizing capacity, sufficient to protect sensitive ecosystems of the Adirondack, Mid-Appalachian, Rocky, and Blue Ridge Mountains and the Great Lakes, Lake Champlain, Long Island Sound, and the Chesapeake Bay. Directs the Administrator, by December 31, 2008, to determine whether emissions reductions under this Act are sufficient to achieve such objectives and, if not, to promulgate regulations necessary to protect such ecosystems.
(Sec. 10) Requires the Administrator to study and report to the Congress on the practicality of monitoring mercury emissions from all combustion units with a minimum capacity of 250 mmBtus per hour.
Provides for regulations to: (1) require reporting of mercury emissions from such units; and (2) control electric utility and industrial source mercury emissions.
(Sec. 11) Directs the Administrator to establish a competitive grant program to fund research related to the effects of nitrogen deposition on sensitive watersheds and coastal estuaries in the eastern United States. Requires the Administrator to report to specified congressional committees on the health and chemistry of certain Adirondack lakes and streams that were subjects of a specified report required under the Clean Air Act Amendments of 1990. Authorizes appropriations.
[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 25 Introduced in House (IH)]
106th CONGRESS
1st Session
H. R. 25
To reduce acid deposition under the Clean Air Act, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 6, 1999
Mr. Boehlert introduced the following bill; which was referred to the
Committee on Commerce
_______________________________________________________________________
A BILL
To reduce acid deposition under the Clean Air Act, and for other
purposes.
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 ``Acid Deposition and Ozone Control
Act''.
SEC. 2. FINDINGS AND PURPOSES.
(a) Findings.--Congress finds that--
(1) reductions of atmospheric nitrogen oxide and sulfur
dioxide from utility plants, in addition to the reductions
required under the Clean Air Act (42 U.S.C. 7401 et seq.), are
needed to reduce acid deposition and its serious adverse
effects on public health, natural resources, building
structures, sensitive ecosystems, and visibility;
(2) nitrogen oxide and sulfur dioxide contribute to the
development of fine particulates, suspected of causing human
mortality and morbidity to a significant extent;
(3) regional nitrogen oxide reductions of 50 percent in the
Eastern United States, in addition to the reductions required
under the Clean Air Act, may be necessary to protect sensitive
watersheds from the effects of nitrogen deposition;
(4) without reductions in nitrogen oxide and sulfur
dioxide, the number of acidic lakes in the Adirondacks in the
State of New York is expected to increase by up to 40 percent
by 2040; and
(5) nitrogen oxide is highly mobile and can lead to ozone
formation hundreds of miles from the emitting source.
(b) Purposes.--The purposes of this Act are--
(1) to recognize the current scientific understanding that
emissions of nitrogen oxide and sulfur dioxide, and the acid
deposition resulting from emissions of nitrogen oxide and
sulfur dioxide, present a substantial human health and
environmental risk;
(2) to require reductions in nitrogen oxide and sulfur
dioxide emissions;
(3) to support the efforts of the Ozone Transport
Assessment Group to reduce ozone pollution;
(4) to reduce utility emissions of nitrogen oxide by 70
percent from 1990 levels; and
(5) to reduce utility emissions of sulfur dioxide by 50
percent after the implementation of phase II sulfur dioxide
requirements under section 405 of the Clean Air Act (42 U.S.C.
7651d).
SEC. 3. DEFINITIONS.
In this Act:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Environmental Protection Agency.
(2) Affected facility.--The term ``affected facility''
means a facility with 1 or more combustion units that serve at
least 1 electricity generator with a capacity equal to or
greater than 25 megawatts.
(3) NO<INF>x</INF> allowance.--The term ``NO<INF>x</INF>
allowance'' means a limited authorization under section 4(3) to
emit, in accordance with this Act, quantities of nitrogen
oxide.
(4) MMBTU.--The term ``mmBtu'' means 1,000,000 British
thermal units.
(5) Program.--The term ``Program'' means the Nitrogen Oxide
Allowance Program established under section 4.
(6) State.--The term ``State'' means the 48 contiguous
States and the District of Columbia.
SEC. 4. NITROGEN OXIDE ALLOWANCE PROGRAM.
(a) In General.--
(1) Establishment.--Not later than 18 months after the date
of enactment of this Act, the Administrator shall establish a
program to be known as the ``Nitrogen Oxide Allowance
Program''.
(2) Scope.--The Program shall be conducted in the 48
contiguous States and the District of Columbia.
(3) NO<INF>x</INF> allowances.--
(A) Allocation.--The Administrator shall allocate
under paragraph (4)--
(i) for each of calendar years 2002 through
2004, 5,400,000 NO<INF>x</INF> allowances; and
(ii) for calendar year 2005 and each
calendar year thereafter, 3,000,000
NO<INF>x</INF> allowances.
(B) Use.--Each NO<INF>x</INF> allowance shall
authorize an affected facility to emit--
(i) 1 ton of nitrogen oxide during each of
the months of October, November, December,
January, February, March, and April of any
year; or
(ii) \1/2\ ton of nitrogen oxide during
each of the months of May, June, July, August,
and September of any year.
(4) Allocation.--
(A) Definition of total electric power.--In this
paragraph, the term ``total electric power'' means all
electric power generated by utility and nonutility
generators for distribution, including electricity
generated from solar, wind, hydro power, nuclear power,
cogeneration facilities, and the combustion of fossil
fuel.
(B) Allocation of allowances.--The Administrator
shall allocate annual NO<INF>x</INF> allowances to each
of the States in proportion to the State's share of the
total electric power generated in all of the States.
(C) Publication.--The Administrator shall publish
in the Federal Register a list of each State's
NO<INF>x</INF> allowance allocation--
(i) by December 1, 2000, for calendar years
2002 through 2004;
(ii) by December 1, 2002, for calendar
years 2005 through 2007; and
(iii) by December 1 of each calendar year
after 2002, for the calendar year that begins
61 months thereafter.
(5) Intrastate distribution.--
(A) In general.--A State may submit to the
Administrator a report detailing the distribution of
NO<INF>x</INF> allowances of the State to affected
facilities in the State--
(i) not later than September 30, 2001, for
calendar years 2002 through 2004;
(ii) not later than September 30, 2003, for
calendar years 2005 through 2012; and
(iii) not later than September 30 of each
calendar year after 2013, for the calendar year
that begins 61 months thereafter.
(B) Action by the administrator.--If a State
submits a report under subparagraph (A) not later than
September 30 of the calendar year specified in
subparagraph (A), the Administrator shall distribute
the NO<INF>x</INF> allowances to affected facilities in
the State as detailed in the report.
(C) Late submission of report.--A report submitted
by a State after September 30 of a specified year shall
be of no effect.
(D) Distribution in absence of a report.--
(i) In general.--Subject to subsection (e),
if a State does not submit a report under
subparagraph (A) not later than September 30 of
the calendar year specified in subparagraph
(A), the Administrator shall, not later than
November 30 of that calendar year, distribute
the NO<INF>x</INF> allowances for the calendar
years specified in subparagraph (A) to each
affected facility in the State in proportion to
the affected facility's share of the total
electric power generated in the State.
(ii) Determination of facility's share.--In
determining an affected facility's share of
total electric power generated in a State, the
Administrator shall consider the net electric
power generated by the facility and the State
to be--
(I) for calendar years 2002 through
2004, the average annual amount of
electric power generated, by the
facility and the State, respectively,
in calendar years 1997 through 1999;
(II) for calendar years 2005
through 2012, the average annual amount
of electric power generated, by the
facility and the State, respectively,
in calendar years 1999 through 2001;
and
(III) for calendar year 2013 and
each calendar year thereafter, the
amount of electric power generated, by
the facility and the State,
respectively, in the calendar year 5
years previous to the year for which
the determination is made.
(E) Judicial review.--A distribution of
NO<INF>x</INF> allowances by the Administrator under
subparagraph (D) shall not be subject to judicial
review.
(b) NO<INF>x</INF> Allowance Transfer System.--
(1) In general.--Not later than 18 months after the date of
enactment of this Act, the Administrator shall promulgate a
NO<INF>x</INF> allowance system regulation under which a
NO<INF>x</INF> allowance allocated under this Act may be
transferred among affected facilities and any other person.
(2) Establishment.--The regulation shall establish the
NO<INF>x</INF> allowance system under this section, including
requirements for the allocation, transfer, and use of
NO<INF>x</INF> allowances under this Act.
(3) Use of no<INF>x</INF> allowances.--The regulation
shall--
(A) prohibit the use (but not the transfer in
accordance with paragraph (5)) of any NO<INF>x</INF>
allowance before the calendar year for which the
NO<INF>x</INF> allowance is allocated; and
(B) provide that the unused NO<INF>x</INF>
allowances shall be carried forward and added to
NO<INF>x</INF> allowances allocated for subsequent
years.
(4) Certification of transfer.--A transfer of a
NO<INF>x</INF> allowance shall not be effective until a written
certification of the transfer, signed by a responsible official
of the person making the transfer, is received and recorded by
the Administrator.
(c) NO<INF>x</INF> Allowance Tracking System.--Not later than 18
months after the date of enactment of this Act, the Administrator shall
promulgate regulations for issuing, recording, and tracking the use and
transfer of NO<INF>x</INF> allowances that shall specify all necessary
procedures and requirements for an orderly and competitive functioning
of the NO<INF>x</INF> allowance system.
(d) Permit Requirements.--A NO<INF>x</INF> allowance allocation or
transfer shall, on recordation by the Administrator, be considered to
be a part of each affected facility's operating permit requirements,
without a requirement for any further permit review or revision.
(e) New Source Reserve.--
(1) In general.--For a State for which the Administrator
distributes NO<INF>x</INF> allowances under subsection
(a)(5)(D), the Administrator shall place 10 percent of the
total annual NO<INF>x</INF> allowances of the State in a new
source reserve to be distributed by the Administrator--
(A) for calendar years 2002 through 2005, to
sources that commence operation after 1998;
(B) for calendar years 2006 through 2011, to
sources that commence operation after 2000; and
(C) for calendar year 2012 and each calendar year
thereafter, to sources that commence operation after
the calendar year that is 5 years previous to the year
for which the distribution is made.
(2) Share.--For a State for which the Administrator
distributes NO<INF>x</INF> allowances under subsection
(a)(5)(D), the Administrator shall distribute to each new
source a number of NO<INF>x</INF> allowances sufficient to
allow emissions by the source at a rate equal to the lesser of
the new source performance standard or the permitted level for
the full nameplate capacity of the source, adjusted pro rata
for the number of months of the year during which the source
operates.
(3) Unused no<INF>x</INF> allowances.--
(A) In general.--During the period of calendar
years 2000 through 2005, the Administrator shall
conduct auctions at which a NO<INF>x</INF> allowance
remaining in the new source reserve that has not been
distributed under paragraph (2) shall be offered for
sale.
(B) Open auctions.--An auction under subparagraph
(A) shall be open to any person.
(C) Conduct of auction.--
(i) Method of bidding.--A person wishing to
bid for a NO<INF>x</INF> allowance at an
auction under subparagraph (A) shall submit (by
a date set by the Administrator) to the
Administrator (on a sealed bid schedule
provided by the Administrator) an offer to
purchase a specified number of NO<INF>x</INF>
allowances at a specified price.
(ii) Sale based on bid price.--A
NO<INF>x</INF> allowance auctioned under
subparagraph (A) shall be sold on the basis of
bid price, starting with the highest priced bid
and continuing until all NO<INF>x</INF>
allowances for sale at the auction have been
sold.
(iii) No minimum price.--A minimum price
shall not be set for the purchase of a
NO<INF>x</INF> allowance auctioned under
subparagraph (A).
(iv) Regulations.--The Administrator, in
consultation with the Secretary of the
Treasury, shall promulgate a regulation to
carry out this paragraph.
(D) Use of no<INF>x</INF> allowances.--A
NO<INF>x</INF> allowance purchased at an auction under
subparagraph (A) may be used for any purpose and at any
time after the auction that is permitted for use of a NO<INF>x</INF>
allowance under this Act.
(E) Proceeds of auction.--The proceeds from an
auction under this paragraph shall be distributed to
the owner of an affected source in proportion to the
number of allowances that the owner would have received
but for this subsection.
(f) Nature of NO<INF>x</INF> Allowances.--
(1) Not a property right.--A NO<INF>x</INF> allowance shall
not be considered to be a property right.
(2) Limitation of no<INF>x</INF> allowances.--
Notwithstanding any other provision of law, the Administrator
may terminate or limit a NO<INF>x</INF> allowance.
(g) Prohibitions.--
(1) In general.--After January 1, 2000, it shall be
unlawful--
(A) for the owner or operator of an affected
facility to operate the affected facility in such a
manner that the affected facility emits nitrogen oxides
in excess of the amount permitted by the quantity of
NO<INF>x</INF> allowances held by the designated
representative of the affected facility; or
(B) for any person to hold, use, or transfer a
NO<INF>x</INF> allowance allocated under this Act,
except as provided under this Act.
(2) Other emission limitations.--Section 407 of the Clean
Air Act (42 U.S.C. 7651f) is repealed.
(3) Time of use.--A NO<INF>x</INF> allowance may not be
used before the calendar year for which the NO<INF>x</INF>
allowance is allocated.
(4) Permitting, monitoring, and enforcement.--Nothing in
this section affects--
(A) the permitting, monitoring, and enforcement
obligations of the Administrator under the Clean Air
Act (42 U.S.C. 7401 et seq.); or
(B) the requirements and liabilities of an affected
facility under that Act.
(h) Savings Provisions.--Nothing in this section--
(1) affects the application of, or compliance with, the
Clean Air Act (42 U.S.C. 7401 et seq.) for an affected
facility, including the provisions related to applicable
national ambient air quality standards and State implementation
plans;
(2) requires a change in, affects, or limits any State law
regulating electric utility rates or charges, including
prudency review under State law;
(3) affects the application of the Federal Power Act (16
U.S.C. 791a et seq.) or the authority of the Federal Energy
Regulatory Commission under that Act; or
(4) interferes with or impairs any program for competitive
bidding for power supply in a State in which the Program is
established.
SEC. 5. INDUSTRIAL SOURCE MONITORING.
Section 412(a) of the Clean Air Act (42 U.S.C. 7651k(a)) is amended
in the first sentence by inserting ``, or of any industrial facility
with a capacity of 100 or more mmBtu's per hour,'' after ``The owner
and operator of any source subject to this title''.
SEC. 6. EXCESS EMISSIONS PENALTY.
(a) In General.--
(1) Liability.--The owner or operator of an affected
facility that emits nitrogen oxides in any calendar year in
excess of the NO<INF>x</INF> allowances the owner or operator
holds for use for the facility for that year shall be liable
for the payment of an excess emissions penalty.
(2) Calculation.--The excess emissions penalty shall be
calculated by multiplying $6,000 by the quantity that is equal
to--
(A) the quantity of NO<INF>x</INF> allowances that
would authorize the nitrogen oxides emitted by the
facility for the calendar year; minus
(B) the quantity of NO<INF>x</INF> allowances that
the owner or operator holds for use for the facility
for that year.
(3) Overlapping penalties.--A penalty under this section
shall not diminish the liability of the owner or operator of an
affected facility for any fine, penalty, or assessment against
the owner or operator for the same violation under any other
provision of law.
(b) Excess Emissions Offset.--
(1) In general.--The owner or operator of an affected
facility that emits nitrogen oxide during a calendar year in
excess of the NO<INF>x</INF> allowances held for the facility
for the calendar year shall offset in the following calendar
year a quantity of NO<INF>x</INF> allowances equal to the
number of NO<INF>x</INF> allowances that would authorize the
excess nitrogen oxides emitted.
(2) Proposed plan.--Not later than 60 days after the end of
the year in which excess emissions occur, the owner or operator
of an affected facility shall submit to the Administrator and the State
in which the affected facility is located a proposed plan to achieve
the offset required under paragraph (1).
(3) Condition of permit.--On approval of the proposed plan
by the Administrator, as submitted, or as modified or
conditioned by the Administrator, the plan shall be considered
a condition of the operating permit for the affected facility
without further review or revision of the permit.
(c) Penalty Adjustment.--The Administrator shall annually adjust
the amount of the penalty specified in subsection (a) to reflect
changes in the Consumer Price Index for all urban consumers published
by the Bureau of Labor Statistics.
SEC. 7. SULFUR DIOXIDE ALLOWANCE PROGRAM REVISIONS.
Section 402 of the Clean Air Act (42 U.S.C. 7651a) is amended by
striking paragraph (3) and inserting the following:
``(3) Allowance.--The term `allowance' means an
authorization, allocated to an affected unit by the
Administrator under this title, to emit, during or after a
specified calendar year--
``(A) in the case of allowances allocated for
calendar years 1997 through 2004, 1 ton of sulfur
dioxide; and
``(B) in the case of allowances allocated for
calendar year 2005 and each calendar year thereafter,
\1/2\ ton of sulfur dioxide.''.
SEC. 8. REGIONAL ECOSYSTEMS.
(a) Report.--
(1) In general.--Not later than December 31, 2004, the
Administrator shall submit to Congress a report identifying
objectives for scientifically credible environmental
indicators, as determined by the Administrator, that are
sufficient to protect sensitive ecosystems of the Adirondack
Mountains, mid-Appalachian Mountains, Rocky Mountains, and
Southern Blue Ridge Mountains and water bodies of the Great
Lakes, Lake Champlain, Long Island Sound, and the Chesapeake
Bay.
(2) Acid neutralizing capacity.--The report under paragraph
(1) shall--
(A) include acid neutralizing capacity as an
indicator; and
(B) identify as an objective under paragraph (1)
the objective of increasing the proportion of water
bodies in sensitive receptor areas with an acid
neutralizing capacity greater than zero from the
proportion identified in surveys begun in 1984.
(3) Updated report.--Not later than December 31, 2008, the
Administrator shall submit to Congress a report updating the
report under paragraph (1) and assessing the status and trends
of various environmental indicators for the regional ecosystems
referred to in paragraph (1).
(4) Reports under the national acid precipitation
assessment program.--The reports under this subsection shall be
subject to the requirements applicable to a report under
section 103(j)(3)(E) of the Clean Air Act (42 U.S.C.
7403(j)(3)(E)).
(b) Regulations.--
(1) Determination.--Not later than December 31, 2008, the
Administrator shall determine whether emissions reductions
under section 4 are sufficient to ensure achievement of the
objectives stated in subsection (a)(1).
(2) Promulgation.--If the Administrator determines under
paragraph (1) that emissions reductions under section 4 are not
sufficient to ensure achievement of the objectives identified
in subsection (a)(1), the Administrator shall promulgate, not
later than 2 years after making the finding, such regulations,
including modification of nitrogen oxide and sulfur dioxide
allowance allocations or any such measure, as the Administrator
determines are necessary to protect the sensitive ecosystems
described in subsection (a)(1).
SEC. 9. GENERAL COMPLIANCE WITH OTHER PROVISIONS.
Except as expressly provided in this Act, compliance with this Act
shall not exempt or exclude the owner or operator of an affected
facility from compliance with any other law.
SEC. 10. MERCURY EMISSION STUDY AND CONTROL.
(a) Study and Report.--The Administrator shall--
(1) study the practicality of monitoring mercury emissions
from all combustion units that have a capacity equal to or
greater than 250 mmBtu's per hour; and
(2) not later than 2 years after the date of enactment of
this Act, submit to Congress a report on the results of the
study.
(b) Regulations Concerning Monitoring.--Not later than 1 year after
the date of submission of the report under subsection (a), the
Administrator shall promulgate a regulation requiring the reporting of
mercury emissions from units that have a capacity equal to or greater
than 250 mmBtu's per hour.
(c) Emission Controls.--
(1) In general.--Not later than 1 year after the
commencement of monitoring activities under subsection (b), the
Administrator shall promulgate a regulation controlling
electric utility and industrial source emissions of mercury.
(2) Factors.--The regulation shall take into account
technological feasibility, cost, and the projected reduction in
levels of mercury emissions that will result from
implementation of this Act.
SEC. 11. DEPOSITION RESEARCH BY THE ENVIRONMENTAL PROTECTION AGENCY.
(a) In General.--The Administrator shall establish a competitive
grant program to fund research related to the effects of nitrogen
deposition on sensitive watersheds and coastal estuaries in the Eastern
United States.
(b) Chemistry of Lakes and Streams.--
(1) Initial report.--Not later than September 30, 2001, the
Administrator shall submit to the Committee on Environment and
Public Works of the Senate and the Committee on Resources of
the House of Representatives a report on the health and
chemistry of lakes and streams of the Adirondacks that were
subjects of the report transmitted under section 404 of Public
Law 101-549 (commonly known as the ``Clean Air Act Amendments
of 1990'') (104 Stat. 2632).
(2) Following report.--Not later than 2 years after the
date of the report under paragraph (1), the Administrator shall
submit a report updating the information contained in the
initial report.
(c) Authorization of Appropriations.--There are authorized to be
appropriated--
(1) to carry out subsection (a), $1,000,000 for each of
fiscal years 2000 through 2005; and
(2) to carry out subsection (b), $1,000,000 for each of
fiscal years 2000, 2001, 2007, and 2008.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Commerce.
Referred to the Subcommittee on Health and Environment.
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