[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 366 Introduced in Senate (IS)]
108th CONGRESS
1st Session
S. 366
To amend the Clean Air Act to reduce emissions from electric
powerplants, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 12, 2003
Mr. Jeffords (for himself, Ms. Collins, Mr. Lieberman, Ms. Snowe, Mr.
Schumer, Mr. Biden, Mrs. Boxer, Mrs. Clinton, Mr. Corzine, Mr. Dodd,
Mr. Edwards, Mr. Feingold, Mrs. Feinstein, Mr. Kennedy, Mr. Kerry, Mr.
Lautenberg, Mr. Leahy, Mr. Reed, Mr. Sarbanes, and Mr. Wyden)
introduced the following bill; which was read twice and referred to the
Committee on Environment and Public Works
_______________________________________________________________________
A BILL
To amend the Clean Air Act to reduce emissions from electric
powerplants, 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 ``Clean Power Act of 2003''.
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. Effect of failure to promulgate regulations.
``Sec. 711. Prohibitions.
``Sec. 712. Modernization of electricity generating facilities.
``Sec. 713. 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)(A) electricity generation accounts for approximately
40 percent of the total emissions in the United States of
carbon dioxide, a major greenhouse gas causing global warming;
and
``(B) the quantity of carbon dioxide in the atmosphere is
growing without constraint and well beyond the international
commitments of the United States;
``(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; and
``(6)(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.
``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,
carbon dioxide, and mercury resulting from the combustion of
fossil fuels in the generation of electric and thermal energy;
``(2) to reduce by 2009 the annual national emissions from
electricity generating facilities to not more than--
``(A) 2,250,000 tons of sulfur dioxide;
``(B) 1,510,000 tons of nitrogen oxides; and
``(C) 2,050,000,000 tons of carbon dioxide;
``(3) to reduce by 2008 the annual national emissions of
mercury from electricity generating facilities to not more than
5 tons;
``(4) to effectuate the reductions described in paragraphs
(2) and (3) by--
``(A) requiring electricity generating facilities
to comply with specified emission limitations by
specified deadlines; and
``(B) allowing electricity generating 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; and
``(5) 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) Covered pollutant.--The term `covered pollutant'
means--
``(A) sulfur dioxide;
``(B) any nitrogen oxide;
``(C) carbon dioxide; and
``(D) mercury.
``(2) Electricity generating facility.--The term
`electricity generating 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 15 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.
``(3) 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.
``(4) 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 carbon dioxide.
``(5) 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 electricity
generating 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.
``(6) 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.
``(7) 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.
``(8) 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.
``(9) Mercury.--The term `mercury' includes any mercury
compound.
``(10) New clean fossil fuel-fired electricity generating
unit.--The term `new clean fossil fuel-fired electricity
generating unit' means a unit that--
``(A) has been in operation for 10 years or less;
and
``(B) is--
``(i) a natural gas fired generator that--
``(I) has an energy conversion
efficiency of at least 55 percent; and
``(II) uses best available control
technology (as defined in section 169);
``(ii) a generator that--
``(I) uses integrated gasification
combined cycle technology;
``(II) uses best available control
technology (as defined in section 169);
and
``(III) has an energy conversion
efficiency of at least 45 percent; or
``(iii) a fuel cell operating on fuel
derived from a nonrenewable source of energy.
``(11) Nonwestern region.--The term `nonwestern region'
means the area of the States that is not included in the
western region.
``(12) 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.
``(13) Small electricity generating facility.--The term
`small electricity generating facility' means an electric or
thermal electricity generating unit, or combination of units,
that--
``(A) has a nameplate capacity of less than 15
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.
``(14) 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. EMISSION LIMITATIONS.
``(a) In General.--Subject to subsections (b) and (c), the
Administrator shall promulgate regulations to ensure that, during 2009
and each year thereafter, the total annual emissions of covered
pollutants from all electricity generating facilities located in all
States does not exceed--
``(1) in the case of sulfur dioxide--
``(A) 275,000 tons in the western region; or
``(B) 1,975,000 tons in the nonwestern region;
``(2) in the case of nitrogen oxides, 1,510,000 tons;
``(3) in the case of carbon dioxide, 2,050,000,000 tons; or
``(4) in the case of mercury, 5 tons.
``(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 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 year; but
``(2) allocated for any previous year under section 707.
``(c) Reductions.--For 2009 and each 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 electricity generating facilities in the
second preceding year; and
``(2) any number of tons of reductions in emissions of the
covered pollutant required under section 705(h).
``SEC. 705. EMISSION ALLOWANCES.
``(a) Creation and Allocation.--
``(1) In general.--For 2009 and each year thereafter,
subject to paragraph (2), there are created, and the
Administrator shall allocate in accordance with section 707,
emission allowances as follows:
``(A) In the case of sulfur dioxide--
``(i) 275,000 emission allowances for each
year for use in the western region; and
``(ii) 1,975,000 emission allowances for
each year for use in the nonwestern region.
``(B) In the case of nitrogen oxides, 1,510,000
emission allowances for each year.
``(C) In the case of carbon dioxide, 2,050,000,000
emission allowances for each year.
``(2) Reductions.--For 2009 and each 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 electricity generating
facilities in the second preceding year; and
``(B) any number of tons of reductions in emissions
of the covered pollutant required under subsection (h).
``(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
carbon dioxide.
``(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 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 electricity
generating facilities in the western region are distinguishable
from emission allowances allocated to electricity generating
facilities in the nonwestern region.
``(3) Year of use.--Each emission allowance may be used in
the year for which the emission allowance is allocated or in
any subsequent year.
``(d) Annual Submission of Emission Allowances.--
``(1) In general.--On or before April 1, 2010, and April 1
of each year thereafter, the owner or operator of each
electricity generating 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 carbon dioxide emitted by the electricity
generating facility during the previous calendar year.
``(2) Special rule for ozone exceedances.--
``(A) Identification of facilities contributing to
nonattainment.--Not later than December 31, 2008, 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 electricity
generating 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 2009
and each year thereafter, on petition from a State or a
person demonstrating that the control measures in
effect at an electricity generating 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
previous year are inadequate to prevent the significant
contribution described in subparagraph (A), the
Administrator, if the Administrator determines that the
electricity generating facility is inadequately
controlled for nitrogen oxides, may require that the
electricity generating facility submit 3 nitrogen oxide
emission allowances for each ton of nitrogen oxides
emitted by the electricity generating facility during
any period of an exceedance of the national ambient air
quality standard for ozone in the State during the
previous 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 electricity
generating 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 electricity
generating 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 electricity generating
facilities.
``(2) Inventory of emissions from small electricity
generating facilities.--On or before January 1, 2005, 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,
carbon dioxide, and particulate matter from small electricity
generating 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
electricity generating facility to submit to the
Administrator--
``(i) not later than April 1 of each year,
verifiable information on covered pollutants
emitted by the electricity generating facility
in the previous 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 electricity
generating facility in 2000, 2001, and 2002, if
the electricity generating facility was
required to report that information in those
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, 2005, each
coal-fired electricity generating 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 electricity
generating facility for the purpose of measuring
maximum concentrations of sulfur dioxide and hazardous
air pollutants emitted by the coal-fired electricity
generating 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 electricity generating
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 electricity
generating 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
electricity generating 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 electricity
generating facility; and
``(ii) the average cost of mercury controls
at electricity generating units that have a
nameplate capacity of 15 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 electricity generating 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 electricity generating
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 electricity generating 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 704 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
electricity generating facilities in addition to the reductions
required under the other provisions of this title.
``(2) Emission allowance trading.--
``(A) Studies.--
``(i) In general.--In 2011 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 electricity
generating 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
electricity generating 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.--Except as provided in
subparagraph (B), 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 considered to be
equivalent to \1/4\ of an emission allowance created by
subsection (a) for sulfur dioxide or nitrogen oxides,
respectively.
``(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 2008 by the owner or operator of an electricity
generating facility through the application of
pollution control technology that resulted in the
achievement and maintenance by the electricity
generating 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. 706. PERMITTING AND TRADING 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 a permitting and emission allowance trading compliance
program to implement the limitations on emissions of covered pollutants
from electricity generating facilities established under section 704.
``(b) Emission Allowance Trading With Facilities Other Than
Electricity Generating Facilities.--
``(1) In general.--Subject to paragraph (2) and section
705(i), the regulations promulgated to establish the program
under subsection (a) shall prohibit use of emission allowances
generated from other emission control programs for the purpose
of demonstrating compliance with the limitations on emissions
of covered pollutants from electricity generating facilities
established under section 704.
``(2) Exception for certain carbon dioxide emission control
programs.--The prohibition described in paragraph (1) shall not
apply in the case of carbon dioxide emission allowances
generated from an emission control program that limits total
carbon dioxide emissions from the entirety of any industrial
sector.
``(c) Methodology.--The program established under subsection (a)
shall clearly identify the methodology for the allocation of emission
allowances, including standards for measuring annual electricity
generation and energy efficiency as the standards relate to emissions.
``SEC. 707. EMISSION ALLOWANCE ALLOCATION.
``(a) Allocation to Electricity Consumers.--
``(1) In general.--For 2009 and each year thereafter, after
making allocations of emission allowances under subsections (b)
through (f), the Administrator shall allocate the remaining
emission allowances created by section 705(a) for the year for
each covered pollutant other than mercury to households served
by electricity.
``(2) Allocation among households.--The allocation to each
household shall reflect--
``(A) the number of persons residing in the
household; and
``(B) the ratio that--
``(i) the quantity of the residential
electricity consumption of the State in which
the household is located; bears to
``(ii) the quantity of the residential
electricity consumption of all States.
``(3) Regulations.--Not later than 1 year after the date of
enactment of this title, the Administrator shall promulgate
regulations making appropriate arrangements for the allocation
of emission allowances to households under this subsection,
including as necessary the appointment of 1 or more trustees--
``(A) to receive the emission allowances for the
benefit of the households;
``(B) to obtain fair market value for the emission
allowances; and
``(C) to distribute the proceeds to the
beneficiaries.
``(b) Allocation for Transition Assistance.--
``(1) In general.--For 2009 and each year thereafter
through 2018, the Administrator shall allocate the percentage
specified in paragraph (2) of the emission allowances created
by section 705(a) for the year for each covered pollutant other
than mercury in the following manner:
``(A) 80 percent shall be allocated to provide
transition assistance to--
``(i) dislocated workers (as defined in
section 101 of the Workforce Investment Act of
1998 (29 U.S.C. 2801)) whose employment has
been terminated or who have been laid off as a
result of the emission reductions required by
this title; and
``(ii) communities that have experienced
disproportionate adverse economic impacts as a
result of the emission reductions required by
this title.
``(B) 20 percent shall be allocated to producers of
electricity intensive products in a number equal to the
product obtained by multiplying--
``(i) the ratio that--
``(I) the quantity of each
electricity intensive product produced
by each producer in the previous year;
bears to
``(II) the quantity of the
electricity intensive product produced
by all producers in the previous year;
``(ii) the average quantity of electricity
used in producing the electricity intensive
product by producers that use the most energy
efficient process for producing the electricity
intensive product; and
``(iii) with respect to the previous year,
the national average quantity (expressed in
tons) of emissions of each such pollutant per
megawatt hour of electricity generated by
electricity generating facilities in all
States.
``(2) Specified percentages.--The percentages referred to
in paragraph (1) are--
``(A) in the case of 2009, 6 percent;
``(B) in the case of 2010, 5.5 percent;
``(C) in the case of 2011, 5 percent;
``(D) in the case of 2012, 4.5 percent;
``(E) in the case of 2013, 4 percent;
``(F) in the case of 2014, 3.5 percent;
``(G) in the case of 2015, 3 percent;
``(H) in the case of 2016, 2.5 percent;
``(I) in the case of 2017, 2 percent; and
``(J) in the case of 2018, 1.5 percent.
``(3) Regulations for allocation for transition assistance
to dislocated workers and communities.--
``(A) In general.--Not later than 1 year after the
date of enactment of this title, the Administrator
shall promulgate regulations making appropriate
arrangements for the distribution of emission
allowances under paragraph (1)(A), including as
necessary the appointment of 1 or more trustees--
``(i) to receive the emission allowances
allocated under paragraph (1)(A) for the
benefit of the dislocated workers and
communities;
``(ii) to obtain fair market value for the
emission allowances; and
``(iii) to apply the proceeds to providing
transition assistance to the dislocated workers
and communities.
``(B) Form of transition assistance.--Transition
assistance under paragraph (1)(A) may take the form
of--
``(i) grants to employers, employer
associations, and representatives of
employees--
``(I) to provide training,
adjustment assistance, and employment
services to dislocated workers; and
``(II) to make income-maintenance
and needs-related payments to
dislocated workers; and
``(ii) grants to States and local
governments to assist communities in attracting
new employers or providing essential local
government services.
``(c) Allocation to Renewable Electricity Generating Units,
Efficiency Projects, and Cleaner Energy Sources.--For 2009 and each
year thereafter, the Administrator shall allocate not more than 20
percent of the emission allowances created by section 705(a) for the
year for each covered pollutant other than mercury--
``(1) to owners and operators of renewable electricity
generating units, in a number equal to the product obtained by
multiplying--
``(A) the number of megawatt hours of electricity
generated in the previous year by each renewable
electricity generating unit; and
``(B) with respect to the previous year, the
national average quantity (expressed in tons) of
emissions of each such pollutant per megawatt hour of
electricity generated by electricity generating
facilities in all States;
``(2) to owners and operators of energy efficient
buildings, producers of energy efficient products, and entities
that carry out energy efficient projects, in a number equal to
the product obtained by multiplying--
``(A) the number of megawatt hours of electricity
or cubic feet of natural gas saved in the previous year
as a result of each energy efficient building, energy
efficient product, or energy efficiency project; and
``(B) with respect to the previous year, the
national average quantity (expressed in tons) of
emissions of each such pollutant per, as appropriate--
``(i) megawatt hour of electricity
generated by electricity generating facilities
in all States; or
``(ii) cubic foot of natural gas burned for
a purpose other than generation of electricity
in all States;
``(3) to owners and operators of new clean fossil fuel-
fired electricity generating units, in a number equal to the
product obtained by multiplying--
``(A) the number of megawatt hours of electricity
generated in the previous year by each new clean fossil
fuel-fired electricity generating unit; and
``(B) with respect to the previous year, \1/2\ of
the national average quantity (expressed in tons) of
emissions of each such pollutant per megawatt hour of
electricity generated by electricity generating
facilities in all States; and
``(4) to owners and operators of combined heat and power
electricity generating facilities, in a number equal to the
product obtained by multiplying--
``(A) the number of British thermal units of
thermal energy produced and put to productive use in
the previous year by each combined heat and power
electricity generating facility; and
``(B) with respect to the previous year, the
national average quantity (expressed in tons) of
emissions of each such pollutant per British thermal
unit of thermal energy generated by electricity
generating facilities in all States.
``(d) Transition Assistance to Electricity Generating Facilities.--
``(1) In general.--For 2009 and each year thereafter
through 2018, the Administrator shall allocate the percentage
specified in paragraph (2) of the emission allowances created
by section 705(a) for the year for each covered pollutant other
than mercury to the owners or operators of electricity
generating facilities in the ratio that--
``(A) the quantity of electricity generated by each
electricity generating facility in 2001; bears to
``(B) the quantity of electricity generated by all
electricity generating facilities in 2001.
``(2) Specified percentages.--The percentages referred to
in paragraph (1) are--
``(A) in the case of 2009, 10 percent;
``(B) in the case of 2010, 9 percent;
``(C) in the case of 2011, 8 percent;
``(D) in the case of 2012, 7 percent;
``(E) in the case of 2013, 6 percent;
``(F) in the case of 2014, 5 percent;
``(G) in the case of 2015, 4 percent;
``(H) in the case of 2016, 3 percent;
``(I) in the case of 2017, 2 percent; and
``(J) in the case of 2018, 1 percent.
``(e) Allocation To Encourage Biological Carbon Sequestration.--
``(1) In general.--For 2009 and each year thereafter, the
Administrator shall allocate, on a competitive basis and in
accordance with paragraphs (2) and (3), not more than 0.075
percent of the carbon dioxide emission allowances created by
section 705(a) for the year for the purposes of--
``(A) carrying out projects to reduce net carbon
dioxide emissions through biological carbon dioxide
sequestration in the United States that--
``(i) result in benefits to watersheds and
fish and wildlife habitats; and
``(ii) are conducted in accordance with
project reporting, monitoring, and verification
guidelines based on--
``(I) measurement of increases in
carbon storage in excess of the carbon
storage that would have occurred in the
absence of such a project;
``(II) comprehensive carbon
accounting that--
``(aa) reflects net
increases in carbon reservoirs;
and
``(bb) takes into account
any carbon emissions resulting
from disturbance of carbon
reservoirs in existence as of
the date of commencement of the
project;
``(III) adjustments to account
for--
``(aa) emissions of carbon
that may result at other
locations as a result of the
impact of the project on timber
supplies; or
``(bb) potential
displacement of carbon
emissions to other land owned
by the entity that carries out
the project; and
``(IV) adjustments to reflect the
expected carbon storage over various
time periods, taking into account the
likely duration of the storage of the
carbon stored in a carbon reservoir;
and
``(B) conducting accurate inventories of carbon
sinks.
``(2) Carbon inventory.--The Administrator, in consultation
with the Secretary of Agriculture, shall allocate not more than
\1/3\ of the emission allowances described in paragraph (1) to
not more than 5 State or multistate land or forest management
agencies or nonprofit entities that--
``(A) have a primary goal of land conservation; and
``(B) submit to the Administrator proposals for
projects--
``(i) to demonstrate and assess the
potential for the development and use of carbon
inventorying and accounting systems;
``(ii) to improve the standards relating
to, and the identification of, incremental
carbon sequestration in forests, agricultural
soil, grassland, or rangeland; or
``(iii) to assist in development of a
national biological carbon storage baseline or
inventory.
``(3) Revolving loan program.--The Administrator shall
allocate not more than \2/3\ of the emission allowances
described in paragraph (1) to States, based on proposals
submitted by States to conduct programs under which each State
shall--
``(A) use the value of the emission allowances to
establish a State revolving loan fund to provide loans
to owners of nonindustrial private forest land in the
State to carry out forest and forest soil carbon
sequestration activities that will achieve the purposes
specified in paragraph (2)(B); and
``(B) for 2010 and each year thereafter, contribute
to the program of the State an amount equal to 25
percent of the value of the emission allowances
received under this paragraph for the year in cash, in-kind services,
or technical assistance.
``(4) Use of emission allowances.--An entity that receives
an allocation of emission allowances under this subsection may
use the proceeds from the sale or other transfer of the
emission allowances only for the purpose of carrying out
activities described in this subsection.
``(5) Recommendations concerning carbon dioxide emission
allowances.--
``(A) In general.--Not later than 4 years after the
date of enactment of this title, the Administrator, in
consultation with the Secretary of Agriculture, shall
submit to Congress recommendations for establishing a
system under which entities that receive grants or
loans under this section may be allocated carbon
dioxide emission allowances created by section 705(a)
for incremental carbon sequestration in forests,
agricultural soils, rangeland, or grassland.
``(B) Guidelines.--The recommendations shall
include recommendations for development, reporting,
monitoring, and verification guidelines for quantifying
net carbon sequestration from land use projects that
address the elements specified in paragraph (1)(A).
``(f) Allocation To Encourage Geological Carbon Sequestration.--
``(1) In general.--For 2009 and each year thereafter, the
Administrator shall allocate not more than 1.5 percent of the
carbon dioxide emission allowances created by section 705(a) to
entities that carry out geological sequestration of carbon
dioxide produced by an electric generating facility in
accordance with requirements established by the Administrator--
``(A) to ensure the permanence of the
sequestration; and
``(B) to ensure that the sequestration will not
cause or contribute to significant adverse effects on
the environment.
``(2) Number of emission allowances.--For 2009 and each
year thereafter, the Administrator shall allocate to each
entity described in paragraph (1) a number of emission
allowances that is equal to the number of tons of carbon
dioxide produced by the electric generating facility during the
previous year that is geologically sequestered as described in
paragraph (1).
``(3) Use of emission allowances.--An entity that receives
an allocation of emission allowances under this subsection may
use the proceeds from the sale or other transfer of the
emission allowances only for the purpose of carrying out
activities described in this subsection.
``SEC. 708. 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
electricity generating facilities.
``(B) No exceedance of national limitation.--The
regulations shall ensure that the national limitation
for mercury emissions from each coal-fired electricity
generating facility established under section 704(a)(4)
is not exceeded.
``(C) Emission limitations for 2008 and
thereafter.--In carrying out subparagraph (A), for 2008
and each 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 electricity
generating 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 previous years from electricity
generating facilities located in all States;
and
``(ii) determine whether, during the 2
previous years, the total mercury emissions
from facilities described in clause (i)
exceeded the national limitation for mercury
emissions established under section 704(a)(4).
``(B) Exceedance of national limitation.--If the
Administrator determines under subparagraph (A)(ii)
that, during the 2 previous years, the total mercury
emissions from facilities described in subparagraph
(A)(i) exceeded the national limitation for mercury
emissions established under section 704(a)(4), 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 electricity
generating 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 electricity generating facility
during each 30-day period; by
``(ii) the quantity of electricity
generated by the coal-fired electricity
generating 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 electricity generating 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 electricity
generating facility during each 30-day period.
``(b) Prevention of Re-Release.--
``(1) Regulations.--Not later than January 1, 2005, the
Administrator shall promulgate regulations to ensure that any
mercury captured or recovered by emission controls installed at
an electricity generating 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.
``SEC. 709. OTHER HAZARDOUS AIR POLLUTANTS.
``(a) In General.--Not later than January 1, 2004, the
Administrator shall issue to owners and operators of coal-fired
electricity generating 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 electricity
generating 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, 2005, propose emission
standards under section 112(d) for hazardous air pollutants
other than mercury; and
``(2) not later than January 1, 2006, 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
electricity generating facility subject to standards for hazardous air
pollutants other than mercury promulgated under subsection (c) to emit,
after December 31, 2007, any such pollutant in excess of the standards.
``(e) Effect on Other Law.--Nothing in this section or section 708
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. 710. EFFECT OF FAILURE TO PROMULGATE REGULATIONS.
``If the Administrator fails to promulgate regulations to implement
and enforce the limitations specified in section 704--
``(1)(A) each electricity generating facility shall
achieve, not later than January 1, 2009, 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 electricity
generating facility that has no controls for emissions
of nitrogen oxides; and
``(ii) in the case of carbon dioxide, 75 percent of
the annual emissions by a similar electricity
generating facility that has no controls for emissions
of carbon dioxide; and
``(B) each electricity generating facility that does not
use natural gas as the primary combustion fuel shall achieve,
not later than January 1, 2009, 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 electricity
generating 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 electricity generating
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
electricity generating facility shall be deemed to incorporate
a requirement for achievement of the reduced levels of
emissions specified in paragraph (1).
``SEC. 711. PROHIBITIONS.
``It shall be unlawful--
``(1) for the owner or operator of any electricity
generating facility--
``(A) to operate the electricity generating
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 705;
``(C) to fail to provide and comply with any plan
to offset excess emissions required under section
705(f); or
``(D) to emit mercury in excess of the emission
limitations established under section 708; 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. 712. MODERNIZATION OF ELECTRICITY GENERATING FACILITIES.
``(a) In General.--Beginning on the later of January 1, 2014, or
the date that is 40 years after the date on which the electricity
generating facility commences operation, each electricity generating
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. 713. 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 2003''.
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 2005, 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
previous 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
2005, 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,
2011, 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--
``(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 2004 through 2013--
(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.
<all>
Introduced in Senate
Sponsor introductory remarks on measure. (CR S2345-2346)
Read twice and referred to the Committee on Environment and Public Works. (text of measure as introduced: CR S2346-2351)
Sponsor introductory remarks on measure. (CR S1515-1517)
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