II 

109TH CONGRESS 

1ST SESSION S. 150 

To amend the Clean Air Act to reduce emissions from electric powerplants, 

and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JANUARY 25, 2005 

Mr. JEFFORDS (for himself, Ms. COLLINS, Mr. LIEBERMAN, Ms. SNOWE, Mr. 

SCHUMER, Mr. BIDEN, Mrs. BOXER, Mrs. CLINTON, Mr. CORZINE, Mr. 

DODD, Mr. FEINGOLD, Mrs. FEINSTEIN, Mr. KENNEDY, Mr. KERRY, Mr. 

LAUTENBERG, Mr. LEAHY, Mr. REED, and Mr. SARBANES) 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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Clean Power Act of 

5 2005’’. 
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1 SEC. 2. ELECTRIC ENERGY GENERATION EMISSION REDUC2 TIONS. 

3 (a) IN GENERAL.—The Clean Air Act (42 U.S.C. 

4 7401 et seq.) is amended by adding at the end the fol5 lowing: 

6 ‘‘TITLE VII—ELECTRIC ENERGY 

7 GENERATION EMISSION RE8 DUCTIONS 

‘‘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. 

9 ‘‘SEC. 701. FINDINGS. 

10 ‘‘Congress finds that— 

11 ‘‘(1) public health and the environment con12 tinue to suffer as a result of pollution emitted by 

13 powerplants across the United States, despite the 

14 success of Public Law 101–549 (commonly known 

15 as the ‘Clean Air Act Amendments of 1990’) (42 

16 U.S.C. 7401 et seq.) in reducing emissions; 

17 ‘‘(2) according to the most reliable scientific 

18 knowledge, acid rain precursors must be significantly 

19 reduced for the ecosystems of the Northeast and 
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1 Southeast to recover from the ecological harm 

2 caused by acid deposition; 

3 ‘‘(3) because lakes and sediments across the 

4 United States are being contaminated by mercury 

5 emitted by powerplants, there is an increasing risk 

6 of mercury poisoning of aquatic habitats and fish7 consuming human populations; 

8 ‘‘(4)(A) electricity generation accounts for ap9 proximately 40 percent of the total emissions in the 

10 United States of carbon dioxide, a major greenhouse 

11 gas causing global warming; and 

12 ‘‘(B) the quantity of carbon dioxide in the at13 mosphere is growing without constraint and well be14 yond the international commitments of the United 

15 States; 

16 ‘‘(5) the cumulative impact of powerplant emis17 sions on public and environmental health must be 

18 addressed swiftly by reducing those harmful emis19 sions to levels that are less threatening; and 

20 ‘‘(6)(A) the atmosphere is a public resource; 

21 and 

22 ‘‘(B) emission allowances, representing permis23 sion to use that resource for disposal of air pollution 

24 from electricity generation, should be allocated to 

25 promote public purposes, including— 
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1 ‘‘(i) protecting electricity consumers from 

2 adverse economic impacts; 

3 ‘‘(ii) providing transition assistance to ad4 versely affected employees, communities, and 

5 industries; and 

6 ‘‘(iii) promoting clean energy resources and 

7 energy efficiency. 

8 ‘‘SEC. 702. PURPOSES. 

9 ‘‘The purposes of this title are— 

10 ‘‘(1) to alleviate the environmental and public 

11 health damage caused by emissions of sulfur dioxide, 

12 nitrogen oxides, carbon dioxide, and mercury result13 ing from the combustion of fossil fuels in the genera14 tion of electric and thermal energy; 

15 ‘‘(2) to reduce by 2010 the annual national 

16 emissions from electricity generating facilities to not 

17 more than— 

18 ‘‘(A) 2,250,000 tons of sulfur dioxide; 

19 ‘‘(B) 1,510,000 tons of nitrogen oxides; 

20 and 

21 ‘‘(C) 2,050,000,000 tons of carbon dioxide; 

22 ‘‘(3) to reduce by 2009 the annual national 

23 emissions of mercury from electricity generating fa24 cilities to not more than 5 tons; 
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1 ‘‘(4) to effectuate the reductions described in 

2 paragraphs (2) and (3) by— 

3 ‘‘(A) requiring electricity generating facili4 ties to comply with specified emission limita5 tions by specified deadlines; and 

6 ‘‘(B) allowing electricity generating facili7 ties to meet the emission limitations (other than 

8 the emission limitation for mercury) through an 

9 alternative method of compliance consisting of 

10 an emission allowance and transfer system; and 

11 ‘‘(5) to encourage energy conservation, use of 

12 renewable and clean alternative technologies, and 

13 pollution prevention as long-range strategies, con14 sistent with this title, for reducing air pollution and 

15 other adverse impacts of energy generation and use. 

16 ‘‘SEC. 703. DEFINITIONS. 

17 ‘‘In this title: 

18 ‘‘(1) COVERED POLLUTANT.—The term ‘cov19 ered pollutant’ means— 

20 ‘‘(A) sulfur dioxide; 

21 ‘‘(B) any nitrogen oxide; 

22 ‘‘(C) carbon dioxide; and 

23 ‘‘(D) mercury. 

24 ‘‘(2) ELECTRICITY GENERATING FACILITY.— 

25 The term ‘electricity generating facility’ means an 
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1 electric or thermal electricity generating unit, a com2 bination of such units, or a combination of 1 or 

3 more such units and 1 or more combustion devices, 

4 that— 

5 ‘‘(A) has a nameplate capacity of 15 

6 megawatts or more (or the equivalent in ther7 mal energy generation, determined in accord8 ance with a methodology developed by the Ad9 ministrator); 

10 ‘‘(B) generates electric energy, for sale, 

11 through combustion of fossil fuel; and 

12 ‘‘(C) emits a covered pollutant into the at13 mosphere. 

14 ‘‘(3) ELECTRICITY INTENSIVE PRODUCT.—The 

15 term ‘electricity intensive product’ means a product 

16 with respect to which the cost of electricity con17 sumed in the production of the product represents 

18 more than 5 percent of the value of the product. 

19 ‘‘(4) EMISSION ALLOWANCE.—The term ‘emis20 sion allowance’ means a limited authorization to 

21 emit in accordance with this title— 

22 ‘‘(A) 1 ton of sulfur dioxide; 

23 ‘‘(B) 1 ton of nitrogen oxides; or 

24 ‘‘(C) 1 ton of carbon dioxide. 
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1 ‘‘(5) ENERGY EFFICIENCY PROJECT.—The term 

2 ‘energy efficiency project’ means any specific action 

3 (other than ownership or operation of an energy effi4 cient building) commenced after the date of enact5 ment of this title— 

6 ‘‘(A) at a facility (other than an electricity 

7 generating facility), that verifiably reduces the 

8 annual electricity or natural gas consumption 

9 per unit output of the facility, as compared 

10 with the annual electricity or natural gas con11 sumption per unit output that would be ex12 pected in the absence of an allocation of emis13 sion allowances (as determined by the Adminis14 trator); or 

15 ‘‘(B) by an entity that is primarily engaged 

16 in the transmission and distribution of elec17 tricity, that significantly improves the efficiency 

18 of that type of entity, as compared with stand19 ards for efficiency developed by the Adminis20 trator, in consultation with the Secretary of En21 ergy, after the date of enactment of this title. 

22 ‘‘(6) ENERGY EFFICIENT BUILDING.—The term 

23 ‘energy efficient building’ means a residential build24 ing or commercial building completed after the date 

25 of enactment of this title for which the projected 
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1 lifetime consumption of electricity or natural gas for 

2 heating, cooling, and ventilation is at least 30 per3 cent less than the lifetime consumption of a typical 

4 new residential building or commercial building, as 

5 determined by the Administrator (in consultation 

6 with the Secretary of Energy)— 

7 ‘‘(A) on a State or regional basis; and 

8 ‘‘(B) taking into consideration— 

9 ‘‘(i) applicable building codes; and 

10 ‘‘(ii) consumption levels achieved in 

11 practice by new residential buildings or 

12 commercial buildings in the absence of an 

13 allocation of emission allowances. 

14 ‘‘(7) ENERGY EFFICIENT PRODUCT.—The term 

15 ‘energy efficient product’ means a product manufac16 tured after the date of enactment of this title that 

17 has an expected lifetime electricity or natural gas 

18 consumption that— 

19 ‘‘(A) is less than the average lifetime elec20 tricity or natural gas consumption for that type 

21 of product; and 

22 ‘‘(B) does not exceed the lesser of— 

23 ‘‘(i) the maximum energy consump24 tion that qualifies for the applicable En25 ergy Star label for that type of product; or 
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1 ‘‘(ii) the average energy consumption 

2 of the most efficient 25 percent of that 

3 type of product manufactured in the same 

4 year. 

5 ‘‘(8) LIFETIME.—The term ‘lifetime’ means— 

6 ‘‘(A) in the case of a residential building 

7 that is an energy efficient building, 30 years; 

8 ‘‘(B) in the case of a commercial building 

9 that is an energy efficient building, 15 years; 

10 and 

11 ‘‘(C) in the case of an energy efficient 

12 product, a period determined by the Adminis13 trator to be the average life of that type of en14 ergy efficient product. 

15 ‘‘(9) MERCURY.—The term ‘mercury’ includes 

16 any mercury compound. 

17 ‘‘(10) NEW CLEAN FOSSIL FUEL-FIRED ELEC18 TRICITY GENERATING UNIT.—The term ‘new clean 

19 fossil fuel-fired electricity generating unit’ means a 

20 unit that— 

21 ‘‘(A) has been in operation for 10 years or 

22 less; and 

23 ‘‘(B) is— 

24 ‘‘(i) a natural gas fired generator 

25 that— 
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1 ‘‘(I) has an energy conversion ef2 ficiency of at least 55 percent; and 

3 ‘‘(II) uses best available control 

4 technology (as defined in section 169); 

5 ‘‘(ii) a generator that— 

6 ‘‘(I) uses integrated gasification 

7 combined cycle technology; 

8 ‘‘(II) uses best available control 

9 technology (as defined in section 169); 

10 and 

11 ‘‘(III) has an energy conversion 

12 efficiency of at least 45 percent; or 

13 ‘‘(iii) a fuel cell operating on fuel de14 rived from a nonrenewable source of en15 ergy. 

16 ‘‘(11) NONWESTERN REGION.—The term ‘non17 western region’ means the area of the States that is 

18 not included in the western region. 

19 ‘‘(12) RENEWABLE ELECTRICITY GENERATING

20 UNIT.—The term ‘renewable electricity generating 

21 unit’ means a unit that— 

22 ‘‘(A) has been in operation for 10 years or 

23 less; and 

24 ‘‘(B) generates electric energy by means 

25 of— 
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1 ‘‘(i) wind; 

2 ‘‘(ii) biomass; 

3 ‘‘(iii) landfill gas; 

4 ‘‘(iv) a geothermal, solar thermal, or 

5 photovoltaic source; or 

6 ‘‘(v) a fuel cell operating on fuel de7 rived from a renewable source of energy. 

8 ‘‘(13) SMALL ELECTRICITY GENERATING FACIL9 ITY.—The term ‘small electricity generating facility’ 

10 means an electric or thermal electricity generating 

11 unit, or combination of units, that— 

12 ‘‘(A) has a nameplate capacity of less than 

13 15 megawatts (or the equivalent in thermal en14 ergy generation, determined in accordance with 

15 a methodology developed by the Administrator); 

16 ‘‘(B) generates electric energy, for sale, 

17 through combustion of fossil fuel; and 

18 ‘‘(C) emits a covered pollutant into the at19 mosphere. 

20 ‘‘(14) WESTERN REGION.—The term ‘western 

21 region’ means the area comprising the States of Ari22 zona, California, Colorado, Idaho, Montana, Nevada, 

23 New Mexico, Oregon, Utah, Washington, and Wyo24 ming. 
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1 ‘‘SEC. 704. EMISSION LIMITATIONS. 

2 ‘‘(a) IN GENERAL.—Subject to subsections (b) and 

3 (c), the Administrator shall promulgate regulations to en4 sure that, during 2010 and each year thereafter, the total 

5 annual emissions of covered pollutants from all electricity 

6 generating facilities located in all States does not exceed— 

7 ‘‘(1) in the case of sulfur dioxide— 

8 ‘‘(A) 275,000 tons in the western region; 

9 or 

10 ‘‘(B) 1,975,000 tons in the nonwestern re11 gion; 

12 ‘‘(2) in the case of nitrogen oxides, 1,510,000 

13 tons; 

14 ‘‘(3) in the case of carbon dioxide, 

15 2,050,000,000 tons; or 

16 ‘‘(4) in the case of mercury, 5 tons. 

17 ‘‘(b) EXCESS EMISSIONS BASED ON UNUSED AL18 LOWANCES.—The regulations promulgated under sub19 section (a) shall authorize emissions of covered pollutants 

20 in excess of the national emission limitations established 

21 under that subsection for a year to the extent that the 

22 number of tons of the excess emissions is less than or 

23 equal to the number of emission allowances that are— 

24 ‘‘(1) used in the year; but 

25 ‘‘(2) allocated for any previous year under sec26 tion 707. 
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1 ‘‘(c) REDUCTIONS.—For 2010 and each year there2 after, the quantity of emissions specified for each covered 

3 pollutant in subsection (a) shall be reduced by the sum 

4 of— 

5 ‘‘(1) the number of tons of the covered pollut6 ant that were emitted by small electricity generating 

7 facilities in the second preceding year; and 

8 ‘‘(2) any number of tons of reductions in emis9 sions of the covered pollutant required under section 

10 705(h). 

11 ‘‘SEC. 705. EMISSION ALLOWANCES. 

12 ‘‘(a) CREATION AND ALLOCATION.— 

13 ‘‘(1) IN GENERAL.—For 2010 and each year 

14 thereafter, subject to paragraph (2), there are cre15 ated, and the Administrator shall allocate in accord16 ance with section 707, emission allowances as fol17 lows: 

18 ‘‘(A) In the case of sulfur dioxide— 

19 ‘‘(i) 275,000 emission allowances for 

20 each year for use in the western region; 

21 and 

22 ‘‘(ii) 1,975,000 emission allowances 

23 for each year for use in the nonwestern re24 gion. 
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1 ‘‘(B) In the case of nitrogen oxides, 

2 1,510,000 emission allowances for each year. 

3 ‘‘(C) In the case of carbon dioxide, 

4 2,050,000,000 emission allowances for each 

5 year. 

6 ‘‘(2) REDUCTIONS.—For 2010 and each year 

7 thereafter, the number of emission allowances speci8 fied for each covered pollutant in paragraph (1) 

9 shall be reduced by a number equal to the sum of— 

10 ‘‘(A) the number of tons of the covered 

11 pollutant that were emitted by small electricity 

12 generating facilities in the second preceding 

13 year; and 

14 ‘‘(B) any number of tons of reductions in 

15 emissions of the covered pollutant required 

16 under subsection (h). 

17 ‘‘(b) NATURE OF EMISSION ALLOWANCES.— 

18 ‘‘(1) NOT A PROPERTY RIGHT.—An emission al19 lowance allocated by the Administrator under sub20 section (a) is not a property right. 

21 ‘‘(2) NO LIMIT ON AUTHORITY TO TERMINATE

22 OR LIMIT.—Nothing in this title or any other provi23 sion of law limits the authority of the United States 

24 to terminate or limit an emission allowance. 
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1 ‘‘(3) TRACKING AND TRANSFER OF EMISSION

2 ALLOWANCES.— 

3 ‘‘(A) IN GENERAL.—Not later than 1 year 

4 after the date of enactment of this title, the Ad5 ministrator shall promulgate regulations to es6 tablish an emission allowance tracking and 

7 transfer system for emission allowances of sul8 fur dioxide, nitrogen oxides, and carbon dioxide. 

9 ‘‘(B) REQUIREMENTS.—The emission al10 lowance tracking and transfer system estab11 lished under subparagraph (A) shall— 

12 ‘‘(i) incorporate the requirements of 

13 subsections (b) and (d) of section 412 (ex14 cept that written certification by the trans15 feree shall not be necessary to effect a 

16 transfer); and 

17 ‘‘(ii) permit any entity— 

18 ‘‘(I) to buy, sell, or hold an emis19 sion allowance; and 

20 ‘‘(II) to permanently retire an 

21 unused emission allowance. 

22 ‘‘(C) PROCEEDS OF TRANSFERS.—Pro23 ceeds from the transfer of emission allowances 

24 by any person to which the emission allowances 

25 have been allocated— 
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1 ‘‘(i) shall not constitute funds of the 

2 United States; and 

3 ‘‘(ii) shall not be available to meet any 

4 obligations of the United States. 

5 ‘‘(c) IDENTIFICATION AND USE.— 

6 ‘‘(1) IN GENERAL.—Each emission allowance 

7 allocated by the Administrator shall bear a unique 

8 serial number, including— 

9 ‘‘(A) an identifier of the covered pollutant 

10 to which the emission allowance pertains; and 

11 ‘‘(B) the first year for which the allowance 

12 may be used. 

13 ‘‘(2) SULFUR DIOXIDE EMISSION ALLOW14 ANCES.—In the case of sulfur dioxide emission al15 lowances, the Administrator shall ensure that the 

16 emission allowances allocated to electricity gener17 ating facilities in the western region are distinguish18 able from emission allowances allocated to electricity 

19 generating facilities in the nonwestern region. 

20 ‘‘(3) YEAR OF USE.—Each emission allowance 

21 may be used in the year for which the emission al22 lowance is allocated or in any subsequent year. 

23 ‘‘(d) ANNUAL SUBMISSION OF EMISSION ALLOW24 ANCES.— 
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1 ‘‘(1) IN GENERAL.—On or before April 1, 2011, 

2 and April 1 of each year thereafter, the owner or op3 erator of each electricity generating facility shall 

4 submit to the Administrator 1 emission allowance 

5 for the applicable covered pollutant (other than mer6 cury) for each ton of sulfur dioxide, nitrogen oxides, 

7 or carbon dioxide emitted by the electricity gener8 ating facility during the previous calendar year. 

9 ‘‘(2) SPECIAL RULE FOR OZONE

10 EXCEEDANCES.— 

11 ‘‘(A) IDENTIFICATION OF FACILITIES CON12 TRIBUTING TO NONATTAINMENT.—Not later 

13 than December 31, 2009, and the end of each 

14 3-year period thereafter, each State, consistent 

15 with the obligations of the State under section 

16 110(a)(2)(D), shall identify the electricity gen17 erating facilities in the State and in other 

18 States that are significantly contributing (as 

19 determined based on guidance issued by the Ad20 ministrator) to nonattainment of the national 

21 ambient air quality standard for ozone in the 

22 State. 

23 ‘‘(B) SUBMISSION OF ADDITIONAL ALLOW24 ANCES.—In 2010 and each year thereafter, on 

25 petition from a State or a person demonstrating 
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1 that the control measures in effect at an elec2 tricity generating facility that is identified 

3 under subparagraph (A) as significantly con4 tributing to nonattainment of the national am5 bient air quality standard for ozone in a State 

6 during the previous year are inadequate to pre7 vent the significant contribution described in 

8 subparagraph (A), the Administrator, if the Ad9 ministrator determines that the electricity gen10 erating facility is inadequately controlled for ni11 trogen oxides, may require that the electricity 

12 generating facility submit 3 nitrogen oxide 

13 emission allowances for each ton of nitrogen ox14 ides emitted by the electricity generating facility 

15 during any period of an exceedance of the na16 tional ambient air quality standard for ozone in 

17 the State during the previous year. 

18 ‘‘(3) REGIONAL LIMITATIONS FOR SULFUR DI19 OXIDE.—The Administrator shall not allow— 

20 ‘‘(A) the use of sulfur dioxide emission al21 lowances allocated for the western region to 

22 meet the obligations under this subsection of 

23 electricity generating facilities in the non24 western region; or 
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1 ‘‘(B) the use of sulfur dioxide emission al2 lowances allocated for the nonwestern region to 

3 meet the obligations under this subsection of 

4 electricity generating facilities in the western 

5 region. 

6 ‘‘(e) EMISSION VERIFICATION, MONITORING, AND

7 RECORDKEEPING.— 

8 ‘‘(1) IN GENERAL.—The Administrator shall 

9 ensure that Federal regulations, in combination with 

10 any applicable State regulations, are adequate to 

11 verify, monitor, and document emissions of covered 

12 pollutants from electricity generating facilities. 

13 ‘‘(2) INVENTORY OF EMISSIONS FROM SMALL

14 ELECTRICITY GENERATING FACILITIES.—On or be15 fore July 1, 2006, the Administrator, in cooperation 

16 with State agencies, shall complete, and on an an17 nual basis update, a comprehensive inventory of 

18 emissions of sulfur dioxide, nitrogen oxides, carbon 

19 dioxide, and particulate matter from small electricity 

20 generating facilities. 

21 ‘‘(3) MONITORING INFORMATION.— 

22 ‘‘(A) IN GENERAL.—Not later than 180 

23 days after the date of enactment of this title, 

24 the Administrator shall promulgate regulations 
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1 to require each electricity generating facility to 

2 submit to the Administrator— 

3 ‘‘(i) not later than April 1 of each 

4 year, verifiable information on covered pol5 lutants emitted by the electricity gener6 ating facility in the previous year, ex7 pressed in— 

8 ‘‘(I) tons of covered pollutants; 

9 and 

10 ‘‘(II) tons of covered pollutants 

11 per megawatt hour of energy (or the 

12 equivalent thermal energy) generated; 

13 and 

14 ‘‘(ii) as part of the first submission 

15 under clause (i), verifiable information on 

16 covered pollutants emitted by the elec17 tricity generating facility in 2002, 2003, 

18 and 2004, if the electricity generating fa19 cility was required to report that informa20 tion in those years. 

21 ‘‘(B) SOURCE OF INFORMATION.—Infor22 mation submitted under subparagraph (A) shall 

23 be obtained using a continuous emission moni24 toring system (as defined in section 402). 
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1 ‘‘(C) AVAILABILITY TO THE PUBLIC.—The 

2 information described in subparagraph (A) shall 

3 be made available to the public— 

4 ‘‘(i) in the case of the first year in 

5 which the information is required to be 

6 submitted under that subparagraph, not 

7 later than 18 months after the date of en8 actment of this title; and 

9 ‘‘(ii) in the case of each year there10 after, not later than April 1 of the year. 

11 ‘‘(4) AMBIENT AIR QUALITY MONITORING FOR

12 SULFUR DIOXIDE AND HAZARDOUS AIR POLLUT13 ANTS.— 

14 ‘‘(A) IN GENERAL.—Beginning January 1, 

15 2006, each coal-fired electricity generating facil16 ity with an aggregate generating capacity of 50 

17 megawatts or more shall, in accordance with 

18 guidelines issued by the Administrator, com19 mence ambient air quality monitoring within a 

20 30-mile radius of the coal-fired electricity gen21 erating facility for the purpose of measuring 

22 maximum concentrations of sulfur dioxide and 

23 hazardous air pollutants emitted by the coal24 fired electricity generating facility. 
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1 ‘‘(B) LOCATION OF MONITORING

2 POINTS.—Monitoring under subparagraph (A) 

3 shall include monitoring at not fewer than 2 

4 points— 

5 ‘‘(i) that are at ground level and with6 in 3 miles of the coal-fired electricity gen7 erating facility; 

8 ‘‘(ii) at which the concentration of 

9 pollutants being monitored is expected to 

10 be the greatest; and 

11 ‘‘(iii) at which the monitoring shall be 

12 the most frequent. 

13 ‘‘(C) FREQUENCY OF MONITORING OF SUL14 FUR DIOXIDE.—Monitoring of sulfur dioxide 

15 under subparagraph (A) shall be carried out on 

16 a continuous basis and averaged over 5-minute 

17 periods. 

18 ‘‘(D) AVAILABILITY TO THE PUBLIC.—The 

19 results of the monitoring under subparagraph 

20 (A) shall be made available to the public. 

21 ‘‘(f) EXCESS EMISSION PENALTY.— 

22 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

23 section 411 shall be applicable to an owner or oper24 ator of an electricity generating facility. 

25 ‘‘(2) CALCULATION OF PENALTY.— 
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1 ‘‘(A) IN GENERAL.—Except as provided in 

2 subparagraph (B), the penalty for failure to 

3 submit emission allowances for covered pollut4 ants as required under subsection (d) shall be 

5 equal to 3 times the product obtained by multi6 plying— 

7 ‘‘(i) as applicable— 

8 ‘‘(I) the number of tons emitted 

9 in excess of the emission limitation re10 quirement applicable to the electricity 

11 generating facility; or 

12 ‘‘(II) the number of emission al13 lowances that the owner or operator 

14 failed to submit; and 

15 ‘‘(ii) the average annual market price 

16 of emission allowances (as determined by 

17 the Administrator). 

18 ‘‘(B) MERCURY.—In the case of mercury, 

19 the penalty shall be equal to 3 times the prod20 uct obtained by multiplying— 

21 ‘‘(i) the number of grams emitted in 

22 excess of the emission limitation require23 ment for mercury applicable to the elec24 tricity generating facility; and 
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1 ‘‘(ii) the average cost of mercury con2 trols at electricity generating units that 

3 have a nameplate capacity of 15 

4 megawatts or more in all States (as deter5 mined by the Administrator). 

6 ‘‘(g) SIGNIFICANT ADVERSE LOCAL IMPACTS.— 

7 ‘‘(1) IN GENERAL.—If the Administrator deter8 mines that emissions of an electricity generating fa9 cility may reasonably be anticipated to cause or con10 tribute to a significant adverse impact on an area 

11 (including endangerment of public health, contribu12 tion to acid deposition in a sensitive receptor area, 

13 and other degradation of the environment), the Ad14 ministrator shall limit the emissions of the electricity 

15 generating facility as necessary to avoid that impact. 

16 ‘‘(2) VIOLATION.—Notwithstanding the avail17 ability of emission allowances, it shall be a violation 

18 of this Act for any electricity generating facility to 

19 exceed any limitation on emissions established under 

20 paragraph (1). 

21 ‘‘(h) ADDITIONAL REDUCTIONS.— 

22 ‘‘(1) PROTECTION OF PUBLIC HEALTH OR WEL23 FARE OR THE ENVIRONMENT.—If the Administrator 

24 determines that the emission levels necessary to 

25 achieve the national emission limitations established 
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1 under section 704 are not reasonably anticipated to 

2 protect public health or welfare or the environment 

3 (including protection of children, pregnant women, 

4 minority or low-income communities, and other sen5 sitive populations), the Administrator may require 

6 reductions in emissions from electricity generating 

7 facilities in addition to the reductions required under 

8 the other provisions of this title. 

9 ‘‘(2) EMISSION ALLOWANCE TRADING.— 

10 ‘‘(A) STUDIES.— 

11 ‘‘(i) IN GENERAL.—In 2013 and at 

12 the end of each 3-year period thereafter, 

13 the Administrator shall complete a study 

14 of the impacts of the emission allowance 

15 trading authorized under this title. 

16 ‘‘(ii) REQUIRED ASSESSMENT.—The 

17 study shall include an assessment of ambi18 ent air quality in areas surrounding elec19 tricity generating facilities that participate 

20 in emission allowance trading, including a 

21 comparison between— 

22 ‘‘(I) the ambient air quality in 

23 those areas; and 

24 ‘‘(II) the national average ambi25 ent air quality. 
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1 ‘‘(B) LIMITATION ON EMISSIONS.—If the 

2 Administrator determines, based on the results 

3 of a study under subparagraph (A), that ad4 verse local impacts result from emission allow5 ance trading, the Administrator may require re6 ductions in emissions from electricity gener7 ating facilities in addition to the reductions re8 quired under the other provisions of this title. 

9 ‘‘(i) USE OF CERTAIN OTHER EMISSION ALLOW10 ANCES.— 

11 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

12 emission allowances or other emission trading in13 struments created under title I or IV for sulfur diox14 ide or nitrogen oxides shall not be valid for submis15 sion under subsection (d). 

16 ‘‘(2) EMISSION ALLOWANCES PLACED IN RE17 SERVE.— 

18 ‘‘(A) IN GENERAL.—Except as provided in 

19 subparagraph (B), an emission allowance de20 scribed in paragraph (1) that was placed in re21 serve under section 404(a)(2) or 405 or 

22 through regulations implementing controls on 

23 nitrogen oxides, because an affected unit emit24 ted fewer tons of sulfur dioxide or nitrogen ox25 ides than were permitted under an emission 
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1 limitation imposed under title I or IV before the 

2 date of enactment of this title, shall be considered to be equivalent to 1 3 ⁄4 of an emission al4 lowance created by subsection (a) for sulfur di5 oxide or nitrogen oxides, respectively. 

6 ‘‘(B) EMISSION ALLOWANCES RESULTING

7 FROM ACHIEVEMENT OF NEW SOURCE PER8 FORMANCE STANDARDS.—If an emission allow9 ance described in subparagraph (A) was created 

10 and placed in reserve during the period of 2001 

11 through 2009 by the owner or operator of an 

12 electricity generating facility through the appli13 cation of pollution control technology that re14 sulted in the achievement and maintenance by 

15 the electricity generating facility of the applica16 ble standards of performance required of new 

17 sources under section 111, the emission allow18 ance shall be valid for submission under sub19 section (d). 

20 ‘‘SEC. 706. PERMITTING AND TRADING OF EMISSION AL21 LOWANCES. 

22 ‘‘(a) IN GENERAL.—Not later than 1 year after the 

23 date of enactment of this title, the Administrator shall 

24 promulgate regulations to establish a permitting and emis25 sion allowance trading compliance program to implement 
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1 the limitations on emissions of covered pollutants from 

2 electricity generating facilities established under section 

3 704. 

4 ‘‘(b) EMISSION ALLOWANCE TRADING WITH FACILI5 TIES OTHER THAN ELECTRICITY GENERATING FACILI6 TIES.— 

7 ‘‘(1) IN GENERAL.—Subject to paragraph (2) 

8 and section 705(i), the regulations promulgated to 

9 establish the program under subsection (a) shall pro10 hibit use of emission allowances generated from 

11 other emission control programs for the purpose of 

12 demonstrating compliance with the limitations on 

13 emissions of covered pollutants from electricity gen14 erating facilities established under section 704. 

15 ‘‘(2) EXCEPTION FOR CERTAIN CARBON DIOX16 IDE EMISSION CONTROL PROGRAMS.—The prohibi17 tion described in paragraph (1) shall not apply in 

18 the case of carbon dioxide emission allowances gen19 erated from an emission control program that limits 

20 total carbon dioxide emissions from the entirety of 

21 any industrial sector. 

22 ‘‘(c) METHODOLOGY.—The program established 

23 under subsection (a) shall clearly identify the methodology 

24 for the allocation of emission allowances, including stand-
29 

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1 ards for measuring annual electricity generation and en2 ergy efficiency as the standards relate to emissions. 

3 ‘‘SEC. 707. EMISSION ALLOWANCE ALLOCATION. 

4 ‘‘(a) ALLOCATION TO ELECTRICITY CONSUMERS.— 

5 ‘‘(1) IN GENERAL.—For 2010 and each year 

6 thereafter, after making allocations of emission al7 lowances under subsections (b) through (f), the Ad8 ministrator shall allocate the remaining emission al9 lowances created by section 705(a) for the year for 

10 each covered pollutant other than mercury to house11 holds served by electricity. 

12 ‘‘(2) ALLOCATION AMONG HOUSEHOLDS.—The 

13 allocation to each household shall reflect— 

14 ‘‘(A) the number of persons residing in the 

15 household; and 

16 ‘‘(B) the ratio that— 

17 ‘‘(i) the quantity of the residential 

18 electricity consumption of the State in 

19 which the household is located; bears to 

20 ‘‘(ii) the quantity of the residential 

21 electricity consumption of all States. 

22 ‘‘(3) REGULATIONS.—Not later than 1 year 

23 after the date of enactment of this title, the Admin24 istrator shall promulgate regulations making appro25 priate arrangements for the allocation of emission 
30 

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1 allowances to households under this subsection, in2 cluding as necessary the appointment of 1 or more 

3 trustees— 

4 ‘‘(A) to receive the emission allowances for 

5 the benefit of the households; 

6 ‘‘(B) to obtain fair market value for the 

7 emission allowances; and 

8 ‘‘(C) to distribute the proceeds to the bene9 ficiaries. 

10 ‘‘(b) ALLOCATION FOR TRANSITION ASSISTANCE.— 

11 ‘‘(1) IN GENERAL.—For 2010 and each year 

12 thereafter through 2019, the Administrator shall al13 locate the percentage specified in paragraph (2) of 

14 the emission allowances created by section 705(a) 

15 for the year for each covered pollutant other than 

16 mercury in the following manner: 

17 ‘‘(A) 80 percent shall be allocated to pro18 vide transition assistance to— 

19 ‘‘(i) dislocated workers (as defined in 

20 section 101 of the Workforce Investment 

21 Act of 1998 (29 U.S.C. 2801)) whose em22 ployment has been terminated or who have 

23 been laid off as a result of the emission re24 ductions required by this title; and 
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1 ‘‘(ii) communities that have experi2 enced disproportionate adverse economic 

3 impacts as a result of the emission reduc4 tions required by this title. 

5 ‘‘(B) 20 percent shall be allocated to pro6 ducers of electricity intensive products in a 

7 number equal to the product obtained by multi8 plying— 

9 ‘‘(i) the ratio that— 

10 ‘‘(I) the quantity of each elec11 tricity intensive product produced by 

12 each producer in the previous year; 

13 bears to 

14 ‘‘(II) the quantity of the elec15 tricity intensive product produced by 

16 all producers in the previous year; 

17 ‘‘(ii) the average quantity of electricity 

18 used in producing the electricity intensive 

19 product by producers that use the most en20 ergy efficient process for producing the 

21 electricity intensive product; and 

22 ‘‘(iii) with respect to the previous 

23 year, the national average quantity (ex24 pressed in tons) of emissions of each such 

25 pollutant per megawatt hour of electricity 
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1 generated by electricity generating facilities 

2 in all States. 

3 ‘‘(2) SPECIFIED PERCENTAGES.—The percent4 ages referred to in paragraph (1) are— 

5 ‘‘(A) in the case of 2010, 6 percent; 

6 ‘‘(B) in the case of 2011, 5.5 percent; 

7 ‘‘(C) in the case of 2012, 5 percent; 

8 ‘‘(D) in the case of 2013, 4.5 percent; 

9 ‘‘(E) in the case of 2014, 4 percent; 

10 ‘‘(F) in the case of 2015, 3.5 percent; 

11 ‘‘(G) in the case of 2016, 3 percent; 

12 ‘‘(H) in the case of 2017, 2.5 percent; 

13 ‘‘(I) in the case of 2018, 2 percent; and 

14 ‘‘(J) in the case of 2019, 1.5 percent. 

15 ‘‘(3) REGULATIONS FOR ALLOCATION FOR

16 TRANSITION ASSISTANCE TO DISLOCATED WORKERS

17 AND COMMUNITIES.— 

18 ‘‘(A) IN GENERAL.—Not later than 1 year 

19 after the date of enactment of this title, the Ad20 ministrator shall promulgate regulations mak21 ing appropriate arrangements for the distribu22 tion of emission allowances under paragraph 

23 (1)(A), including as necessary the appointment 

24 of 1 or more trustees— 
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1 ‘‘(i) to receive the emission allowances 

2 allocated under paragraph (1)(A) for the 

3 benefit of the dislocated workers and com4 munities; 

5 ‘‘(ii) to obtain fair market value for 

6 the emission allowances; and 

7 ‘‘(iii) to apply the proceeds to pro8 viding transition assistance to the dis9 located workers and communities. 

10 ‘‘(B) FORM OF TRANSITION ASSISTANCE.— 

11 Transition assistance under paragraph (1)(A) 

12 may take the form of— 

13 ‘‘(i) grants to employers, employer as14 sociations, and representatives of employ15 ees— 

16 ‘‘(I) to provide training, adjust17 ment assistance, and employment 

18 services to dislocated workers; and 

19 ‘‘(II) to make income-mainte20 nance and needs-related payments to 

21 dislocated workers; and 

22 ‘‘(ii) grants to States and local gov23 ernments to assist communities in attract24 ing new employers or providing essential 

25 local government services. 
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1 ‘‘(c) ALLOCATION TO RENEWABLE ELECTRICITY

2 GENERATING UNITS, EFFICIENCY PROJECTS, AND

3 CLEANER ENERGY SOURCES.—For 2010 and each year 

4 thereafter, the Administrator shall allocate not more than 

5 20 percent of the emission allowances created by section 

6 705(a) for the year for each covered pollutant other than 

7 mercury— 

8 ‘‘(1) to owners and operators of renewable elec9 tricity generating units, in a number equal to the 

10 product obtained by multiplying— 

11 ‘‘(A) the number of megawatt hours of 

12 electricity generated in the previous year by 

13 each renewable electricity generating unit; and 

14 ‘‘(B) with respect to the previous year, the 

15 national average quantity (expressed in tons) of 

16 emissions of each such pollutant per megawatt 

17 hour of electricity generated by electricity gen18 erating facilities in all States; 

19 ‘‘(2) to owners and operators of energy efficient 

20 buildings, producers of energy efficient products, 

21 and entities that carry out energy efficient projects, 

22 in a number equal to the product obtained by multi23 plying— 

24 ‘‘(A) the number of megawatt hours of 

25 electricity or cubic feet of natural gas saved in 
35 

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1 the previous year as a result of each energy ef2 ficient building, energy efficient product, or en3 ergy efficiency project; and 

4 ‘‘(B) with respect to the previous year, the 

5 national average quantity (expressed in tons) of 

6 emissions of each such pollutant per, as appro7 priate— 

8 ‘‘(i) megawatt hour of electricity gen9 erated by electricity generating facilities in 

10 all States; or 

11 ‘‘(ii) cubic foot of natural gas burned 

12 for a purpose other than generation of 

13 electricity in all States; 

14 ‘‘(3) to owners and operators of new clean fossil 

15 fuel-fired electricity generating units, in a number 

16 equal to the product obtained by multiplying— 

17 ‘‘(A) the number of megawatt hours of 

18 electricity generated in the previous year by 

19 each new clean fossil fuel-fired electricity gener20 ating unit; and 

‘‘(B) with respect to the previous year, 1 21 ⁄2

22 of the national average quantity (expressed in 

23 tons) of emissions of each such pollutant per 

24 megawatt hour of electricity generated by elec25 tricity generating facilities in all States; and 
36 

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1 ‘‘(4) to owners and operators of combined heat 

2 and power electricity generating facilities, in a num3 ber equal to the product obtained by multiplying— 

4 ‘‘(A) the number of British thermal units 

5 of thermal energy produced and put to produc6 tive use in the previous year by each combined 

7 heat and power electricity generating facility; 

8 and 

9 ‘‘(B) with respect to the previous year, the 

10 national average quantity (expressed in tons) of 

11 emissions of each such pollutant per British 

12 thermal unit of thermal energy generated by 

13 electricity generating facilities in all States. 

14 ‘‘(d) TRANSITION ASSISTANCE TO ELECTRICITY

15 GENERATING FACILITIES.— 

16 ‘‘(1) IN GENERAL.—For 2010 and each year 

17 thereafter through 2019, the Administrator shall al18 locate the percentage specified in paragraph (2) of 

19 the emission allowances created by section 705(a) 

20 for the year for each covered pollutant other than 

21 mercury to the owners or operators of electricity 

22 generating facilities in the ratio that— 

23 ‘‘(A) the quantity of electricity generated 

24 by each electricity generating facility in 2003; 

25 bears to 
37 

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1 ‘‘(B) the quantity of electricity generated 

2 by all electricity generating facilities in 2003. 

3 ‘‘(2) SPECIFIED PERCENTAGES.—The percent4 ages referred to in paragraph (1) are— 

5 ‘‘(A) in the case of 2010, 10 percent; 

6 ‘‘(B) in the case of 2011, 9 percent; 

7 ‘‘(C) in the case of 2012, 8 percent; 

8 ‘‘(D) in the case of 2013, 7 percent; 

9 ‘‘(E) in the case of 2014, 6 percent; 

10 ‘‘(F) in the case of 2015, 5 percent; 

11 ‘‘(G) in the case of 2016, 4 percent; 

12 ‘‘(H) in the case of 2017, 3 percent; 

13 ‘‘(I) in the case of 2018, 2 percent; and 

14 ‘‘(J) in the case of 2019, 1 percent. 

15 ‘‘(e) ALLOCATION TO ENCOURAGE BIOLOGICAL CAR16 BON SEQUESTRATION.— 

17 ‘‘(1) IN GENERAL.—For 2010 and each year 

18 thereafter, the Administrator shall allocate, on a 

19 competitive basis and in accordance with paragraphs 

20 (2) and (3), not more than 0.075 percent of the car21 bon dioxide emission allowances created by section 

22 705(a) for the year for the purposes of— 

23 ‘‘(A) carrying out projects to reduce net 

24 carbon dioxide emissions through biological car-
38 

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1 bon dioxide sequestration in the United States 

2 that— 

3 ‘‘(i) result in benefits to watersheds 

4 and fish and wildlife habitats; and 

5 ‘‘(ii) are conducted in accordance with 

6 project reporting, monitoring, and 

7 verification guidelines based on— 

8 ‘‘(I) measurement of increases in 

9 carbon storage in excess of the carbon 

10 storage that would have occurred in 

11 the absence of such a project; 

12 ‘‘(II) comprehensive carbon ac13 counting that— 

14 ‘‘(aa) reflects net increases 

15 in carbon reservoirs; and 

16 ‘‘(bb) takes into account any 

17 carbon emissions resulting from 

18 disturbance of carbon reservoirs 

19 in existence as of the date of 

20 commencement of the project; 

21 ‘‘(III) adjustments to account 

22 for— 

23 ‘‘(aa) emissions of carbon 

24 that may result at other locations 
39 

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1 as a result of the impact of the 

2 project on timber supplies; or 

3 ‘‘(bb) potential displacement 

4 of carbon emissions to other land 

5 owned by the entity that carries 

6 out the project; and 

7 ‘‘(IV) adjustments to reflect the 

8 expected carbon storage over various 

9 time periods, taking into account the 

10 likely duration of the storage of the 

11 carbon stored in a carbon reservoir; 

12 and 

13 ‘‘(B) conducting accurate inventories of 

14 carbon sinks. 

15 ‘‘(2) CARBON INVENTORY.—The Administrator, 

16 in consultation with the Secretary of Agriculture, 

shall allocate not more than 1 17 ⁄3 of the emission al18 lowances described in paragraph (1) to not more 

19 than 5 State or multistate land or forest manage20 ment agencies or nonprofit entities that— 

21 ‘‘(A) have a primary goal of land conserva22 tion; and 

23 ‘‘(B) submit to the Administrator pro24 posals for projects— 
40 

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1 ‘‘(i) to demonstrate and assess the po2 tential for the development and use of car3 bon inventorying and accounting systems; 

4 ‘‘(ii) to improve the standards relating 

5 to, and the identification of, incremental 

6 carbon sequestration in forests, agricul7 tural soil, grassland, or rangeland; or 

8 ‘‘(iii) to assist in development of a na9 tional biological carbon storage baseline or 

10 inventory. 

11 ‘‘(3) REVOLVING LOAN PROGRAM.—The Administrator shall allocate not more than 2 12 ⁄3 of the emis13 sion allowances described in paragraph (1) to States, 

14 based on proposals submitted by States to conduct 

15 programs under which each State shall— 

16 ‘‘(A) use the value of the emission allow17 ances to establish a State revolving loan fund to 

18 provide loans to owners of nonindustrial private 

19 forest land in the State to carry out forest and 

20 forest soil carbon sequestration activities that 

21 will achieve the purposes specified in paragraph 

22 (2)(B); and 

23 ‘‘(B) for 2011 and each year thereafter, 

24 contribute to the program of the State an 

25 amount equal to 25 percent of the value of the 
41 

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1 emission allowances received under this para2 graph for the year in cash, in-kind services, or 

3 technical assistance. 

4 ‘‘(4) USE OF EMISSION ALLOWANCES.—An enti5 ty that receives an allocation of emission allowances 

6 under this subsection may use the proceeds from the 

7 sale or other transfer of the emission allowances only 

8 for the purpose of carrying out activities described 

9 in this subsection. 

10 ‘‘(5) RECOMMENDATIONS CONCERNING CARBON

11 DIOXIDE EMISSION ALLOWANCES.— 

12 ‘‘(A) IN GENERAL.—Not later than 4 years 

13 after the date of enactment of this title, the Ad14 ministrator, in consultation with the Secretary 

15 of Agriculture, shall submit to Congress rec16 ommendations for establishing a system under 

17 which entities that receive grants or loans 

18 under this section may be allocated carbon diox19 ide emission allowances created by section 

20 705(a) for incremental carbon sequestration in 

21 forests, agricultural soils, rangeland, or grass22 land. 

23 ‘‘(B) GUIDELINES.—The recommendations 

24 shall include recommendations for development, 

25 reporting, monitoring, and verification guide-
42 

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1 lines for quantifying net carbon sequestration 

2 from land use projects that address the ele3 ments specified in paragraph (1)(A). 

4 ‘‘(f) ALLOCATION TO ENCOURAGE GEOLOGICAL CAR5 BON SEQUESTRATION.— 

6 ‘‘(1) IN GENERAL.—For 2010 and each year 

7 thereafter, the Administrator shall allocate not more 

8 than 1.5 percent of the carbon dioxide emission al9 lowances created by section 705(a) to entities that 

10 carry out geological sequestration of carbon dioxide 

11 produced by an electric generating facility in accord12 ance with requirements established by the Adminis13 trator— 

14 ‘‘(A) to ensure the permanence of the se15 questration; and 

16 ‘‘(B) to ensure that the sequestration will 

17 not cause or contribute to significant adverse 

18 effects on the environment. 

19 ‘‘(2) NUMBER OF EMISSION ALLOWANCES.— 

20 For 2010 and each year thereafter, the Adminis21 trator shall allocate to each entity described in para22 graph (1) a number of emission allowances that is 

23 equal to the number of tons of carbon dioxide pro24 duced by the electric generating facility during the 
43 

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1 previous year that is geologically sequestered as de2 scribed in paragraph (1). 

3 ‘‘(3) USE OF EMISSION ALLOWANCES.—An enti4 ty that receives an allocation of emission allowances 

5 under this subsection may use the proceeds from the 

6 sale or other transfer of the emission allowances only 

7 for the purpose of carrying out activities described 

8 in this subsection. 

9 ‘‘SEC. 708. MERCURY EMISSION LIMITATIONS. 

10 ‘‘(a) IN GENERAL.— 

11 ‘‘(1) REGULATIONS.— 

12 ‘‘(A) IN GENERAL.—Not later than 1 year 

13 after the date of enactment of this title, the Ad14 ministrator shall promulgate regulations to es15 tablish emission limitations for mercury emis16 sions by coal-fired electricity generating facili17 ties. 

18 ‘‘(B) NO EXCEEDANCE OF NATIONAL LIMI19 TATION.—The regulations shall ensure that the 

20 national limitation for mercury emissions from 

21 each coal-fired electricity generating facility es22 tablished under section 704(a)(4) is not exceed23 ed. 

24 ‘‘(C) EMISSION LIMITATIONS FOR 2009 AND

25 THEREAFTER.—In carrying out subparagraph 
44 

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1 (A), for 2009 and each year thereafter, the Ad2 ministrator shall not— 

3 ‘‘(i) subject to subsections (e) and (f) 

4 of section 112, establish limitations on 

5 emissions of mercury from coal-fired elec6 tricity generating facilities that allow emis7 sions in excess of 2.48 grams of mercury 

8 per 1000 megawatt hours; or 

9 ‘‘(ii) differentiate between facilities 

10 that burn different types of coal. 

11 ‘‘(2) ANNUAL REVIEW AND DETERMINATION.— 

12 ‘‘(A) IN GENERAL.—Not later than April 1 

13 of each year, the Administrator shall— 

14 ‘‘(i) review the total mercury emis15 sions during the 2 previous years from 

16 electricity generating facilities located in 

17 all States; and 

18 ‘‘(ii) determine whether, during the 2 

19 previous years, the total mercury emissions 

20 from facilities described in clause (i) ex21 ceeded the national limitation for mercury 

22 emissions established under section 

23 704(a)(4). 

24 ‘‘(B) EXCEEDANCE OF NATIONAL LIMITA25 TION.—If the Administrator determines under 
45 

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1 subparagraph (A)(ii) that, during the 2 pre2 vious years, the total mercury emissions from 

3 facilities described in subparagraph (A)(i) ex4 ceeded the national limitation for mercury emis5 sions established under section 704(a)(4), the 

6 Administrator shall, not later than 1 year after 

7 the date of the determination, revise the regula8 tions promulgated under paragraph (1) to re9 duce the emission rates specified in the regula10 tions as necessary to ensure that the national 

11 limitation for mercury emissions is not exceeded 

12 in any future year. 

13 ‘‘(3) COMPLIANCE FLEXIBILITY.— 

14 ‘‘(A) IN GENERAL.—Each coal-fired elec15 tricity generating facility subject to an emission 

16 limitation under this section shall be in compli17 ance with that limitation if that limitation is 

18 greater than or equal to the quotient obtained 

19 by dividing— 

20 ‘‘(i) the total mercury emissions of the 

21 coal-fired electricity generating facility dur22 ing each 30-day period; by 

23 ‘‘(ii) the quantity of electricity gen24 erated by the coal-fired electricity gener25 ating facility during that period. 
46 

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1 ‘‘(B) MORE THAN 1 UNIT AT A FACIL2 ITY.—In any case in which more than 1 coal3 fired electricity generating unit at a coal-fired 

4 electricity generating facility subject to an emis5 sion limitation under this section was operated 

6 in 1999 under common ownership or control, 

7 compliance with the emission limitation may be 

8 determined by averaging the emission rates of 

9 all coal-fired electricity generating units at the 

10 electricity generating facility during each 30- 

11 day period. 

12 ‘‘(b) PREVENTION OF RE-RELEASE.— 

13 ‘‘(1) REGULATIONS.—Not later than July 1, 

14 2006, the Administrator shall promulgate regula15 tions to ensure that any mercury captured or recov16 ered by emission controls installed at an electricity 

17 generating facility is not re-released into the envi18 ronment. 

19 ‘‘(2) REQUIRED ELEMENTS.—The regulations 

20 shall require— 

21 ‘‘(A) daily covers on all active waste dis22 posal units, and permanent covers on all inac23 tive waste disposal units, to prevent the release 

24 of mercury into the air; 
47 

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1 ‘‘(B) monitoring of groundwater to ensure 

2 that mercury or mercury compounds do not mi3 grate from the waste disposal unit; 

4 ‘‘(C) waste disposal siting requirements 

5 and cleanup requirements to protect ground6 water and surface water resources; 

7 ‘‘(D) elimination of agricultural application 

8 of coal combustion wastes; and 

9 ‘‘(E) appropriate limitations on mercury 

10 emissions from sources or processes that re11 process or use coal combustion waste, including 

12 manufacturers of wallboard and cement. 

13 ‘‘SEC. 709. OTHER HAZARDOUS AIR POLLUTANTS. 

14 ‘‘(a) IN GENERAL.—Not later than January 1, 2006, 

15 the Administrator shall issue to owners and operators of 

16 coal-fired electricity generating facilities requests for in17 formation under section 114 that are of sufficient scope 

18 to generate data sufficient to support issuance of stand19 ards under section 112(d) for hazardous air pollutants 

20 other than mercury emitted by coal-fired electricity gener21 ating facilities. 

22 ‘‘(b) DEADLINE FOR SUBMISSION OF REQUESTED

23 INFORMATION.—The Administrator shall require each re24 cipient of a request for information described in subsection 
48 

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1 (a) to submit the requested data not later than 180 days 

2 after the date of the request. 

3 ‘‘(c) PROMULGATION OF EMISSION STANDARDS.— 

4 The Administrator shall— 

5 ‘‘(1) not later than January 1, 2006, propose 

6 emission standards under section 112(d) for haz7 ardous air pollutants other than mercury; and 

8 ‘‘(2) not later than January 1, 2007, promul9 gate emission standards under section 112(d) for 

10 hazardous air pollutants other than mercury. 

11 ‘‘(d) PROHIBITION ON EXCESS EMISSIONS.—It shall 

12 be unlawful for an electricity generating facility subject 

13 to standards for hazardous air pollutants other than mer14 cury promulgated under subsection (c) to emit, after De15 cember 31, 2008, any such pollutant in excess of the 

16 standards. 

17 ‘‘(e) EFFECT ON OTHER LAW.—Nothing in this sec18 tion or section 708 affects any requirement of subsection 

19 (e), (f)(2), or (n)(1)(A) of section 112, except that the 

20 emission limitations established by regulations promul21 gated under this section shall be deemed to represent the 

22 maximum achievable control technology for mercury emis23 sions from electricity generating units under section 

24 112(d). 
49 

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1 ‘‘SEC. 710. EFFECT OF FAILURE TO PROMULGATE REGULA2 TIONS. 

3 ‘‘If the Administrator fails to promulgate regulations 

4 to implement and enforce the limitations specified in sec5 tion 704— 

6 ‘‘(1)(A) each electricity generating facility shall 

7 achieve, not later than January 1, 2010, an annual 

8 quantity of emissions that is less than or equal to— 

9 ‘‘(i) in the case of nitrogen oxides, 15 per10 cent of the annual emissions by a similar elec11 tricity generating facility that has no controls 

12 for emissions of nitrogen oxides; and 

13 ‘‘(ii) in the case of carbon dioxide, 75 per14 cent of the annual emissions by a similar elec15 tricity generating facility that has no controls 

16 for emissions of carbon dioxide; and 

17 ‘‘(B) each electricity generating facility that 

18 does not use natural gas as the primary combustion 

19 fuel shall achieve, not later than January 1, 2010, 

20 an annual quantity of emissions that is less than or 

21 equal to— 

22 ‘‘(i) in the case of sulfur dioxide, 5 percent 

23 of the annual emissions by a similar electricity 

24 generating facility that has no controls for 

25 emissions of sulfur dioxide; and 
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1 ‘‘(ii) in the case of mercury, 10 percent of 

2 the annual emissions by a similar electricity 

3 generating facility that has no controls included 

4 specifically for the purpose of controlling emis5 sions of mercury; and 

6 ‘‘(2) the applicable permit under this Act for 

7 each electricity generating facility shall be deemed to 

8 incorporate a requirement for achievement of the re9 duced levels of emissions specified in paragraph (1). 

10 ‘‘SEC. 711. PROHIBITIONS. 

11 ‘‘It shall be unlawful— 

12 ‘‘(1) for the owner or operator of any electricity 

13 generating facility— 

14 ‘‘(A) to operate the electricity generating 

15 facility in noncompliance with the requirements 

16 of this title (including any regulations imple17 menting this title); 

18 ‘‘(B) to fail to submit by the required date 

19 any emission allowances, or pay any penalty, for 

20 which the owner or operator is liable under sec21 tion 705; 

22 ‘‘(C) to fail to provide and comply with any 

23 plan to offset excess emissions required under 

24 section 705(f); or 
51 

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1 ‘‘(D) to emit mercury in excess of the 

2 emission limitations established under section 

3 708; or 

4 ‘‘(2) for any person to hold, use, or transfer 

5 any emission allowance allocated under this title ex6 cept in accordance with regulations promulgated by 

7 the Administrator. 

8 ‘‘SEC. 712. MODERNIZATION OF ELECTRICITY GENERATING 

9 FACILITIES. 

10 ‘‘(a) IN GENERAL.—Beginning on the later of Janu11 ary 1, 2014, or the date that is 40 years after the date 

12 on which the electricity generating facility commences op13 eration, each electricity generating facility shall be subject 

14 to emission limitations reflecting the application of best 

15 available control technology on a new major source of a 

16 similar size and type (as determined by the Administrator) 

17 as determined in accordance with the procedures specified 

18 in part C of title I. 

19 ‘‘(b) ADDITIONAL REQUIREMENTS.—The require20 ments of this section shall be in addition to the other re21 quirements of this title. 

22 ‘‘SEC. 713. RELATIONSHIP TO OTHER LAW. 

23 ‘‘(a) IN GENERAL.—Except as expressly provided in 

24 this title, nothing in this title— 
52 

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1 ‘‘(1) limits or otherwise affects the application 

2 of any other provision of this Act; or 

3 ‘‘(2) precludes a State from adopting and en4 forcing any requirement for the control of emissions 

5 of air pollutants that is more stringent than the re6 quirements imposed under this title. 

7 ‘‘(b) REGIONAL SEASONAL EMISSION CONTROLS.— 

8 Nothing in this title affects any regional seasonal emission 

9 control for nitrogen oxides established by the Adminis10 trator or a State under title I.’’. 

11 (b) CONFORMING AMENDMENT.—Section 412(a) of 

12 the Clean Air Act (42 U.S.C. 7651k(a)) is amended in 

13 the first sentence by striking ‘‘opacity’’ and inserting 

14 ‘‘mercury, opacity,’’. 

15 SEC. 3. SAVINGS CLAUSE. 

16 Section 193 of the Clean Air Act (42 U.S.C. 7515) 

17 is amended by striking ‘‘date of the enactment of the 

18 Clean Air Act Amendments of 1990’’ each place it appears 

19 and inserting ‘‘date of enactment of the Clean Power Act 

20 of 2005’’. 

21 SEC. 4. ACID PRECIPITATION RESEARCH PROGRAM. 

22 Section 103(j) of the Clean Air Act (42 U.S.C. 

23 7403(j)) is amended— 

24 (1) in paragraph (3)— 
53 

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1 (A) in subparagraph (F)(i), by striking 

2 ‘‘effects; and’’ and inserting ‘‘effects, including 

3 an assessment of— 

4 ‘‘(I) acid-neutralizing capacity; 

5 and 

6 ‘‘(II) changes in the number of 

7 water bodies in the sensitive eco8 systems referred to in subparagraph 

9 (G)(ii) with an acid-neutralizing ca10 pacity greater than zero; and’’; and 

11 (B) by adding at the end the following: 

12 ‘‘(G) SENSITIVE ECOSYSTEMS.— 

13 ‘‘(i) IN GENERAL.—Beginning in 

14 2006, and every 4 years thereafter, the re15 port under subparagraph (E) shall in16 clude— 

17 ‘‘(I) an identification of environ18 mental objectives necessary to be 

19 achieved (and related indicators to be 

20 used in measuring achievement of the 

21 objectives) to adequately protect and 

22 restore sensitive ecosystems; and 

23 ‘‘(II) an assessment of the status 

24 and trends of the environmental objec-
54 

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1 tives and indicators identified in pre2 vious reports under this paragraph. 

3 ‘‘(ii) SENSITIVE ECOSYSTEMS TO BE

4 ADDRESSED.—Sensitive ecosystems to be 

5 addressed under clause (i) include— 

6 ‘‘(I) the Adirondack Mountains, 

7 mid-Appalachian Mountains, Rocky 

8 Mountains, and southern Blue Ridge 

9 Mountains; 

10 ‘‘(II) the Great Lakes, Lake 

11 Champlain, Long Island Sound, and 

12 the Chesapeake Bay; and 

13 ‘‘(III) other sensitive ecosystems, 

14 as determined by the Administrator. 

15 ‘‘(H) ACID DEPOSITION STANDARDS.—Be16 ginning in 2006, and every 4 years thereafter, 

17 the report under subparagraph (E) shall include 

18 a revision of the report under section 404 of 

19 Public Law 101–549 (42 U.S.C. 7651 note) 

20 that includes a reassessment of the health and 

21 chemistry of the lakes and streams that were 

22 subjects of the original report under that sec23 tion.’’; and 

24 (2) by adding at the end the following: 
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1 ‘‘(4) PROTECTION OF SENSITIVE ECO2 SYSTEMS.— 

3 ‘‘(A) DETERMINATION.—Not later than 

4 December 31, 2012, the Administrator, taking 

5 into consideration the findings and rec6 ommendations of the report revisions under 

7 paragraph (3)(H), shall determine whether 

8 emission reductions under titles IV and VII are 

9 sufficient to— 

10 ‘‘(i) achieve the necessary reductions 

11 identified under paragraph (3)(F); and 

12 ‘‘(ii) ensure achievement of the envi13 ronmental objectives identified under para14 graph (3)(G). 

15 ‘‘(B) REGULATIONS.— 

16 ‘‘(i) IN GENERAL.—Not later than 2 

17 years after the Administrator makes a de18 termination under subparagraph (A) that 

19 emission reductions are not sufficient, the 

20 Administrator shall promulgate regulations 

21 to protect the sensitive ecosystems referred 

22 to in paragraph (3)(G)(ii). 

23 ‘‘(ii) CONTENTS.—Regulations under 

24 clause (i) shall include modifications to— 
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1 ‘‘(I) provisions relating to nitro2 gen oxide and sulfur dioxide emission 

3 reductions; 

4 ‘‘(II) provisions relating to allo5 cations of nitrogen oxide and sulfur 

6 dioxide allowances; and 

7 ‘‘(III) such other provisions as 

8 the Administrator determines to be 

9 necessary.’’. 

10 SEC. 5. AUTHORIZATION OF APPROPRIATIONS FOR DEPOSI11 TION MONITORING. 

12 (a) OPERATIONAL SUPPORT.—In addition to 

13 amounts made available under any other law, there are 

14 authorized to be appropriated for each of fiscal years 2006 

15 through 2015— 

16 (1) for operational support of the National At17 mospheric Deposition Program National Trends 

18 Network— 

19 (A) $2,000,000 to the United States Geo20 logical Survey; 

21 (B) $600,000 to the Environmental Pro22 tection Agency; 

23 (C) $600,000 to the National Park Serv24 ice; and 

25 (D) $400,000 to the Forest Service; 
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1 (2) for operational support of the National At2 mospheric Deposition Program Mercury Deposition 

3 Network— 

4 (A) $400,000 to the Environmental Pro5 tection Agency; 

6 (B) $400,000 to the United States Geo7 logical Survey; 

8 (C) $100,000 to the National Oceanic and 

9 Atmospheric Administration; and 

10 (D) $100,000 to the National Park Serv11 ice; 

12 (3) for the National Atmospheric Deposition 

13 Program Atmospheric Integrated Research Moni14 toring Network $1,500,000 to the National Oceanic 

15 and Atmospheric Administration; 

16 (4) for the Clean Air Status and Trends Net17 work $5,000,000 to the Environmental Protection 

18 Agency; and 

19 (5) for the Temporally Integrated Monitoring of 

20 Ecosystems and Long-Term Monitoring Program 

21 $2,500,000 to the Environmental Protection Agency. 

22 (b) MODERNIZATION.—In addition to amounts made 

23 available under any other law, there are authorized to be 

24 appropriated— 
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1 (1) for equipment and site modernization of the 

2 National Atmospheric Deposition Program National 

3 Trends Network $6,000,000 to the Environmental 

4 Protection Agency; 

5 (2) for equipment and site modernization and 

6 network expansion of the National Atmospheric 

7 Deposition Program Mercury Deposition Network 

8 $2,000,000 to the Environmental Protection Agency; 

9 (3) for equipment and site modernization and 

10 network expansion of the National Atmospheric 

11 Deposition Program Atmospheric Integrated Re12 search Monitoring Network $1,000,000 to the Na13 tional Oceanic and Atmospheric Administration; and 

14 (4) for equipment and site modernization and 

15 network expansion of the Clean Air Status and 

16 Trends Network $4,600,000 to the Environmental 

17 Protection Agency. 

18 (c) AVAILABILITY OF AMOUNTS.—Each of the 

19 amounts appropriated under subsection (b) shall remain 

20 available until expended. 

21 SEC. 6. TECHNICAL AMENDMENTS. 

22 Title IV of the Clean Air Act (relating to noise pollu23 tion) (42 U.S.C. 7641 et seq.)— 
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1 (1) is amended by redesignating sections 401 

2 through 403 as sections 801 through 803, respec3 tively; and 

4 (2) is redesignated as title VIII and moved to 

5 appear at the end of that Act. 

Æ