To amend the Clean Air Act to reduce emissions from electric powerplants, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Clean Smokestacks Act of 2001''.

SEC. 2. REDUCTION OF EMISSIONS FROM POWERPLANTS.

    Part A of title I of the Clean Air Act (42 U.S.C. 7401 et seq.) is 
amended by adding at the end the following:

``SEC. 132. REDUCTION OF EMISSIONS FROM POWERPLANTS.

    ``(a) Emission Reduction Objectives.--The emission reduction 
objectives of this section are to reduce, not later than January 1, 
2007:
            ``(1) aggregate sulfur dioxide emissions from powerplants 
        by 75 percent from the levels allowed under full implementation 
        of the phase II sulfur dioxide requirements under title IV 
        (relating to acid deposition control);
            ``(2) aggregate nitrogen oxide emissions from powerplants 
        by 75 percent from 1997 levels;
            ``(3) aggregate carbon dioxide emissions from powerplants 
        to the level of carbon dioxide emissions from powerplants in 
        1990; and
            ``(4) aggregate mercury emissions from powerplants by 90 
        percent from the 1999 levels.
    ``(b) Agency Action.--
            ``(1) Regulations.--
                    ``(A) In general.--Not later than 2 years after the 
                date of enactment of this section, the Administrator 
                shall promulgate regulations to achieve the emission 
                reduction objectives specified in subsection (a).
                    ``(B) Elements.--The regulations promulgated under 
                subparagraph (A)--
                            ``(i) shall achieve the objectives in a 
                        manner that the Administrator determines will 
                        allocate required emission reductions 
                        equitably, taking into account emission 
                        reductions achieved before the date of 
                        enactment of this section and other relevant 
                        factors;
                            ``(ii) may include, except in the case of 
                        mercury, market-oriented mechanisms (such as 
                        emissions trading based on generation 
                        performance standards, auctions, or other 
                        allocation methods);
                            ``(iii) shall prevent localized adverse 
                        effects on public health and the environment 
                        and ensure that significant emission reductions 
                        are achieved in both the Eastern and Western 
                        regions of the United States;
                            ``(iv) shall ensure that any captured or 
                        recovered mercury is not rereleased into the 
                        environment; and
                            ``(v) shall, include, consistent with 
                        achieving the objectives set forth in 
                        subsection (a), incentives for renewable 
                        energy.
            ``(2) Interagency coordination to minimize costs and 
        maximize gains.--To minimize the economic costs and maximize 
        the economic gains of achieving the emission reduction 
        objectives specified in subsection (a), the Administrator shall 
        coordinate with other departments and agencies of Federal and 
        State government to increase energy efficiency, to increase the 
        use of renewable energy, and to implement cost saving advanced 
        demand and supply side policies, such as those described in the 
        report prepared by the Interlaboratory Working Group of the 
        Department of Energy entitled `Scenarios for a Clean Energy 
        Future', dated November 2000.
    ``(c) Additional Reductions.--The regulations promulgated under 
subsection (b) may require additional reductions in emissions from 
powerplants if the Administrator determines that the emission levels 
necessary to achieve the emission reduction objectives specified in 
subsection (a) are not reasonably anticipated to protect public health 
or welfare.
    ``(d) Modernization of Outdated Powerplants.--
            ``(1) In general.--On the later of the date that is 30 
        years after a powerplant commenced operation or the date that 
        is 5 years after the date of enactment of this section, it 
        shall comply with--
                    ``(A) the most recent new source performance 
                standards promulgated under section 111; and
                    ``(B) the requirements under parts C and D that are 
                applicable to modified sources.
            ``(2) Additional requirements.--The requirements of this 
        subsection shall be in addition to the requirements of the 
        regulations promulgated under subsection (b).
    ``(e) Other Requirements.--The requirements of this section shall 
be in addition to, and not in lieu of, any other requirement of this 
Act.
    ``(f) Definition.--In this section, the term `powerplant' means an 
electric generation facility with a nameplate capacity of 15 megawatts 
or more that uses a combustion device to generate electricity for 
sale.''.

Summary: Clean Smokestacks Act of 2001 - Amends the Clean Air Act (CAA) to require the Administrator of the Environmental Protection Agency to promulgate regulations to achieve specified reductions in emissions of sulfur dioxide, nitrogen oxide, carbon dioxide, and mercury from powerplants by January 1, 2007. Requires powerplants, on the later of the date 30 years after the powerplant commenced operation or five years after this Act's enactment, to comply with the most recent new source performance standards under CAA provisions regarding air quality and emissions limitations and with specified requirements for modified sources.