To reduce acid deposition under the Clean Air Act, and for other purposes.

Summary: Acid Rain Control Act - Amends the Clean Air Act to require further reductions in total annual emissions of sulfur dioxide by utility units and nitrogen oxides by facilities with one or more combustion units serving at least one electricity generator with a capacity of at least 25 megawatts. Permits emissions trading and allocation.Requires the Administrator of the Environmental Protection Agency to promulgate regulations controlling electric utility and industrial source emissions of mercury. Prohibits mercury emission allowance transfers.Requires that these emissions regulations prevent localized adverse effects and ensure significant reductions on both coasts.Directs the Administrator to identify for and report to Congress on scientifically credible environmental indicators sufficient to protect sensitive ecosystems of the Adirondack, mid-Appalachian, Rocky and Southern Blue Ridge Mountains as well as the Great Lakes, Lake Champlain, Long Island Sound, and the Chesapeake Bay.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Acid Rain Control Act''.

SEC. 2. REDUCTION IN TOTAL ANNUAL EMISSIONS OF SULFUR DIOXIDE BY 
              UTILITY UNITS.

    The second sentence of section 403(a) of the Clean Air Act (42 
U.S.C. 7651b) is amended by striking the period at the end and 
inserting ``, and such 8.90 million tons amount shall be reduced to 
4.45 million tons for each of calendar years 2008, 2009, 2010, and 
2011, and shall be further reduced to 3 million tons for calendar years 
thereafter.''.

SEC. 3. REDUCTION IN TOTAL ANNUAL EMISSIONS OF NITROGEN OXIDES BY 
              AFFECTED FACILITIES.

    (a) Total Annual Emissions.--The Administrator of the Environmental 
Protection Agency shall ensure that total annual emissions of nitrogen 
oxides by affected facilities in the 50 States and the District of 
Columbia do not exceed--
            (1) 2.10 million tons for each of calendar years 2008, 
        2009, 2010, and 2011; and
            (2) 1.70 million tons for calendar year 2012 and each 
        calendar year thereafter.
    (b) Penalty.--The owner or operator of any affected facility that 
emits nitrogen oxides for any calendar year after 2007 in excess of the 
facility's emissions limitation requirement, or any allowance the owner 
or operator holds for the facility for that calendar year, under 
regulations promulgated under this Act or title IV of the Clean Air Act 
(42 U.S.C. 7651 et seq.)--
            (1) shall be liable for the payment of an excess emissions 
        penalty under section 411 of such title (42 U.S.C. 7651j), 
        except that the penalty shall be calculated on the basis of the 
        number of tons emitted in excess of the facility's emissions 
        limitation requirement multiplied by $6,000; and
            (2) shall be liable to offset the excess emissions by an 
        equal tonnage amount in the manner applicable under section 411 
        of such title (42 U.S.C. 7651j) to the owner or operator of any 
        affected source that emits excess sulfur dioxide.
    (c) Affected Facility.--For purposes of this section, the term 
``affected facility'' means a facility with 1 or more combustion units 
that serve at least 1 electricity generator with a capacity not less 
than 25 megawatts.

SEC. 4. MERCURY EMISSION CONTROL.

    (a) Regulation.--Not later than December 15, 2004, the 
Administrator shall promulgate a regulation controlling electric 
utility and industrial source emissions of mercury in the 50 States and 
the District of Columbia.
    (b) Prohibition on Transfer.--The Administrator may not allow any 
electric utility or other industrial source to transfer any mercury 
emission allowance.

SEC. 5. REGULATIONS.

    (a) In General.--The Administrator shall promulgate regulations to 
carry out sections 2, 3, and 4 that--
            (1) may, except in the case of mercury, provide for market-
        oriented mechanisms, such as emissions trading, auctions, or 
        other allocation methods;
            (2) shall prevent localized adverse effects on public 
        health and the environment; and
            (3) shall ensure that significant emission reductions are 
        achieved in both the Eastern and Western Regions of the United 
        States.
    (b) Deadline.--The Administrator shall promulgate--
            (1) the regulations required under subsection (a) to carry 
        out sections 2 and 3 not later than 2 years after the date of 
        the enactment of this Act; and
            (2) the regulations required under subsection (a) to carry 
        out section 4 not later than December 15, 2004.

SEC. 6. REGIONAL ECOSYSTEMS.

    (a) Report.--
            (1) In general.--Not later than December 31, 2007, the 
        Administrator shall submit to the 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 shall--
                    (A) include acid neutralizing capacity as an 
                indicator; and
                    (B) identify as an objective 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, 2011, the 
        Administrator shall submit to the 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, 2011, the 
        Administrator shall determine whether emissions reductions 
        called for in this Act are sufficient to ensure achievement of 
        the objectives stated in subsection (a)(1).
            (2) Promulgation.--If the Administrator finds under 
        paragraph (1) that emission reductions 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 oxides 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. 7. ADMINISTRATOR.

    For purposes of this Act, the term ``Administrator'' means the 
Administrator of the Environmental Protection Agency.