II 

110TH CONGRESS 

1ST SESSION S. 1177 

To amend the Clean Air Act to establish a national uniform multiple air 

pollutant regulatory program for the electric generating sector. 

IN THE SENATE OF THE UNITED STATES 

APRIL 20, 2007 

Mr. CARPER (for himself, Mr. SUNUNU, Mr. GREGG, Mr. DODD, Mrs. FEINSTEIN, Mrs. LINCOLN, Mr. LIEBERMAN, and Ms. COLLINS) 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 establish a national uniform 

multiple air pollutant regulatory program for the electric 

generating sector. 

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 Air Planning 

5 Act of 2007’’. 

6 SEC. 2. FINDINGS AND PURPOSES. 

7 (a) FINDINGS.—Congress finds that— 

8 (1) in 1992, the Unites States became a signa9 tory to the United Nations Framework Convention 


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1 on Climate Change, done at New York on May 9, 

2 1992, in recognition of the need to begin to reverse 

3 the adverse effects of global warming by decreasing 

4 greenhouse gas emission levels to 1990 levels; 

5 (2) fossil fuel-fired electric generating facilities, 

6 consisting of facilities fueled by coal, fuel oil, and 

natural gas, produce nearly 2 7 ⁄3 of the electricity gen8 erated in the United States; 

9 (3) fossil fuel-fired electric generating facilities 

10 produce approximately 67 percent of the total sulfur 

11 dioxide emissions, 23 percent of the total nitrogen 

12 oxides emissions, 40 percent of the total carbon di13 oxide emissions, and 40 percent of the total mercury 

14 emissions, in the United States; 

15 (4)(A) in 1977, in amending the Clean Air Act 

16 (42 U.S.C. 7401 et seq.), Congress sought to pre17 vent adverse impacts caused by manmade pollution 

18 on national parks and wilderness areas designated 

19 as class I areas under section 162(a) of that Act (42 

20 U.S.C. 7472(a)); 

21 (B) as of the date of enactment of this Act— 

22 (i) many class I areas are impaired by 

23 haze pollution; 


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1 (ii) the ecosystems of many class I areas 

2 are impacted by deposits of acidic and toxic 

3 compounds; and 

4 (iii) the air quality of many class I areas 

5 fails to meet national ambient air quality stand6 ards; and 

7 (C)(i) fossil-fuel fired electric generating units 

8 are the major source of air pollution impacting class 

9 I areas; and 

10 (ii) proposed new fossil-fuel fired electric gener11 ating units threaten to increase air pollution in class 

12 I areas throughout the United States; 

13 (5)(A) on implementing an acid rain program 

14 in 1990, the Administrator of the Environmental 

15 Protection Agency (referred to in this subsection as 

16 the ‘‘Administrator’’) overestimated the actual cost 

17 of sulfur dioxide permits by more than a factor of 

18 5; and 

19 (B) after years of carrying out the program, the 

20 Administrator acknowledged that ‘‘independent stud21 ies show that real life experiences with the program 

22 reveal greater cost savings than initially expected, 

23 due in large part to the efficiencies achieved through 

24 emissions trading’’; 


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(6)(A) nearly 3 1 ⁄4 of all powerplant boilers in op2 eration on the date of enactment of this Act are 

3 more than 30 years old, and most continue to oper4 ate without modern pollution control technology; and 

5 (B) those older powerplants release approxi6 mately 99 percent of the sulfur dioxide, 98 percent 

7 of the nitrogen oxides, and 91 percent of the carbon 

8 dioxide emitted from all powerplants; 

9 (7)(A) many electric generating facilities have 

10 been exempt from the emission limitations applicable 

11 to new units based on the expectation that over time 

12 the units would be retired or updated with new pol13 lution control equipment; but 

14 (B) many of the exempted units continue to op15 erate and emit pollutants at relatively high rates; 

16 (8) according to the analysis by the Adminis17 trator of the rule of the Administrator entitled the 

18 ‘‘Clean Air Interstate Rule’’ (70 Fed. Reg. 25162 

19 (May 12, 2005)), the majority of the 1,168 outdated 

20 coal-fired powerplant boilers in operation in the east21 ern United States on the date of enactment of this 

22 Act will operate without sulfur dioxide scrubbers and 

23 advanced nitrogen oxide controls even after the im24 plementation of that rule is completed in 2020, such 

25 that— 


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1 (A) 858 plants will operate without sulfur 

2 dioxide scrubbers; and 

3 (B) 915 powerplants will operate without 

4 advanced nitrogen oxide controls; 

5 (9) according to the Energy Outlook for 2006 

6 of the Energy Information Administration, carbon 

7 dioxide emissions from electric generating units in 

8 the Unites States have increased by 32 percent dur9 ing the period of 1990 through 2006; 

10 (10) the deployment by the electric utility sec11 tor of zero- and low-emitting generation technologies 

12 should be accelerated given the increase in carbon 

13 dioxide emissions from the electric utility sector de14 scribed in paragraph (9); 

15 (11) the ability of owners of electric generating 

16 facilities to plan effectively for the future is impeded 

17 by the uncertainties surrounding future environ18 mental regulatory requirements that are imposed in19 efficiently on a piecemeal basis; 

20 (12) many owners of electric generating units 

21 have failed— 

22 (A) to install best available control tech23 nology for emissions reductions; and 

24 (B) to retire the units, as anticipated by 

25 Congress in the new source review provisions of 


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1 the prevention of significant deterioration and 

2 nonattainment programs of the Clean Air Act 

3 (42 U.S.C. 7401 et seq.); 

4 (13) according to the Administrator, many own5 ers of electric generating units carried out projects 

6 to extend the economic lives of the units without up7 grading the emission controls of the units to best 

8 available control technology levels; 

9 (14) according to the National Energy Tech10 nology Laboratory of the Department of Energy— 

11 (A) as of the date of enactment of this 

12 Act, 159 new coal-fired electric generating units 

13 are proposed to be constructed, which would 

14 produce 96 gigawatts of new electric generating 

15 capacity; and 

16 (B) if the units described in subparagraph 

17 (A) are constructed, the units would produce— 

18 (i) an incremental increase of 

19 500,000,000 tons of carbon dioxide per 

20 year from the production by the power sec21 tor in the United States as in existence on 

22 the date of enactment of this Act; and 

23 (ii) an estimated 30,000,000,000 ad24 ditional tons of carbon dioxide over the 


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1 course of the useful lives of the units (as2 suming a lifespan of 60 years); 

3 (15) total emissions of carbon dioxide from the 

4 United States should be on a reduction pathway to 

5 achieve a 60 percent to 80 percent reduction from 

6 current levels by 2050; 

7 (16) pollution from electric generating facilities 

8 in existence on the date of enactment of this Act can 

9 be reduced through the adoption of modern tech10 nologies and practices; 

11 (17) a report of the Congressional Budget Of12 fice, dated September 19, 2006, concluded that— 

13 (A) relying exclusively on research and de14 velopment funding is not the most effective 

15 strategy for reducing greenhouse gas emissions; 

16 and 

17 (B) combining research and development 

18 funding with a gradually-increasing limitation 

19 on emissions is a more cost-effective approach; 

20 (18)(A) agriculture can be part of the solution 

21 to reducing greenhouse gas emissions; 

22 (B) less productive agricultural land can be re23 forested with carbon dioxide-consuming trees; 


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1 (C) farming practices can be improved to in2 crease the absorption and retention of carbon in ag3 ricultural soils; 

4 (D) biomass from agricultural sources (includ5 ing corn and grass) could be used to produce 

6 biofuels that can take the place of high-carbon fossil 

7 fuels used in transportation and power generation; 

8 and 

9 (E) many of the farming practices and land use 

10 changes involved in achieving those reductions have 

11 multiple benefits, including— 

12 (i) improving soil, water, and air quality; 

13 (ii) increasing wildlife habitat; and 

14 (iii) providing additional recreational op15 portunities; and 

16 (19) States and regions have increasingly 

17 adopted programs to address carbon dioxide emis18 sions from electric generating facilities, and Federal 

19 regulations relating to carbon dioxide emissions 

20 should take those programs into consideration. 

21 (b) PURPOSES.—The purposes of this Act are— 

22 (1) to protect and preserve the environment and 

23 safeguard public health by ensuring that substantial 

24 emission reductions are achieved at fossil fuel-fired 

25 electric generating facilities; 


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1 (2) to reduce significantly the quantities of 

2 mercury, carbon dioxide, sulfur dioxide, and nitrogen 

3 oxides that enter the environment as a result of the 

4 combustion of fossil fuels; 

5 (3) to ensure that air quality of national parks 

6 and all other class I areas (as designated by section 

7 162(a) of the Clean Air Act (42 U.S.C. 7472(a))) 

8 impacted by emissions from fossil-fuel fired electric 

9 generating units is significantly improved by 2016, 

10 the year in which the National Park System cele11 brates its 100th anniversary; 

12 (4) to encourage the development and use of re13 newable energy; 

14 (5) to internalize the cost of protecting the val15 ues of public health, air, land, and water quality; 

16 (6) to provide a period of environmental regu17 latory stability for owners and operators of electric 

18 generating facilities so as to promote improved man19 agement of existing assets and new capital invest20 ments; 

21 (7) to achieve emission reductions from electric 

22 generating facilities in a cost-effective manner; 

23 (8) to establish a mandatory cap-and-trade sys24 tem for the electric power sector that is part of an 


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1 economy-wide national greenhouse gas trading mar2 ket; 

3 (9) to provide for the future integration of addi4 tional sectors of the economy into such a greenhouse 

5 gas trading market; and 

6 (10) to establish a regulatory system that, by 

7 2050, will allow for a reduction in United States 

8 greenhouse gas emissions to a level of approximately 

9 20 percent to 40 percent of levels of emissions as of 

10 the date of enactment of this Act. 

11 SEC. 3. INTEGRATED AIR QUALITY PLANNING FOR THE 

12 ELECTRIC GENERATING SECTOR. 

13 The Clean Air Act (42 U.S.C. 7401 et seq.) is amend14 ed by adding at the end the following: 

15 ‘‘TITLE VII—INTEGRATED AIR 

16 QUALITY PLANNING FOR THE 

17 ELECTRIC GENERATING SEC18 TOR 

‘‘TITLE VII—INTEGRATED AIR QUALITY PLANNING FOR THE 

ELECTRIC GENERATING SECTOR 

‘‘Sec. 701. Definitions. 

‘‘Sec. 702. National pollutant tonnage limitations. 

‘‘Sec. 703. Nitrogen oxide trading program. 

‘‘Sec. 704. Mercury program. 

‘‘Sec. 705. Carbon dioxide allowance trading program. 

‘‘Sec. 706. Distribution of allowances between auctions and allocations; nature 

of allowances. 

‘‘Sec. 707. Auction of allowances. 

‘‘Sec. 708. Climate Action Trust Fund. 

19 ‘‘SEC. 701. DEFINITIONS. 

20 ‘‘In this title: 


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1 ‘‘(1) AFFECTED UNIT.— 

2 ‘‘(A) CARBON DIOXIDE.— 

3 ‘‘(i) IN GENERAL.—The term ‘affected 

4 unit’, with respect to carbon dioxide, 

5 means a fossil fuel-fired electric generating 

6 facility (including a cogeneration facility) 

7 that— 

8 ‘‘(I) on or after January 1, 1985, 

9 served as a generator with a name10 plate capacity greater than 25 

11 megawatts; and 

12 ‘‘(II) produces electricity for sale. 

13 ‘‘(ii) INCLUSION.—The term ‘affected 

14 unit’, with respect to nuclear facilities, in15 cludes only incremental nuclear generation 

16 facilities. 

17 ‘‘(B) MERCURY.—The term ‘affected unit’, 

18 with respect to mercury, means a coal-fired 

19 electric generating facility (including a cogen20 eration facility) that— 

21 ‘‘(i) on or after January 1, 1985, 

22 served as a generator with a nameplate ca23 pacity greater than 25 megawatts; and 

24 ‘‘(ii) produces electricity for sale. 


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1 ‘‘(C) NITROGEN OXIDES.—The term ‘af2 fected unit’, with respect to nitrogen oxides, 

3 means a fossil fuel-fired electric generating fa4 cility (including a cogeneration facility) that— 

5 ‘‘(i) on or after January 1, 1985, 

6 served as a generator with a nameplate ca7 pacity greater than 25 megawatts; and 

8 ‘‘(ii) produces electricity for sale. 

9 ‘‘(D) SULFUR DIOXIDE.—The term ‘af10 fected unit’, with respect to sulfur dioxide, has 

11 the meaning given the term in section 402. 

12 ‘‘(2) CARBON DIOXIDE ALLOWANCE.—The term 

13 ‘carbon dioxide allowance’ means an authorization 

14 allocated by the Administrator under this title to 

15 emit 1 ton of carbon dioxide during or after a speci16 fied calendar year. 

17 ‘‘(3) COGENERATION FACILITY.—The term ‘co18 generation facility’ means a facility that— 

19 ‘‘(A) cogenerates— 

20 ‘‘(i) steam; and 

21 ‘‘(ii) electricity; and 

22 ‘‘(B) supplies, on a net annual basis, to 

23 any utility power distribution system for sale— 

‘‘(i) more than 1 24 ⁄3 of the potential 

25 electric output capacity of the facility; and 


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1 ‘‘(ii) more than 219,000 megawatt2 hours of electrical output. 

3 ‘‘(4) COVERED UNIT.—The term ‘covered unit’ 

4 means— 

5 ‘‘(A) an affected unit; 

6 ‘‘(B) with respect to incremental nuclear 

7 generation, a nuclear generating unit; and 

8 ‘‘(C) a renewable energy unit. 

9 ‘‘(5) FOSSIL FUEL-FIRED.—The term ‘fossil 

10 fuel-fired’, with respect to an electric generating fa11 cility, means the combustion of fossil fuel by the 

12 electric generating facility, alone or in combination 

13 with any other fuel, in any case in which the fossil 

14 fuel combusted comprises, or is projected to com15 prise, more than 20 percent of the annual heat input 

16 of the electric generating facility, on a Btu basis, 

17 during any calendar year. 

18 ‘‘(6) FUND.—The term ‘Fund’ means the Cli19 mate Action Trust Fund established by section 

20 708(a)(1). 

21 ‘‘(7) GREENHOUSE GAS.—The term ‘greenhouse 

22 gas’ means— 

23 ‘‘(A) carbon dioxide; 

24 ‘‘(B) methane; 

25 ‘‘(C) nitrous oxide; 


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1 ‘‘(D) hydrofluorocarbons; 

2 ‘‘(E) perfluorocarbons; and 

3 ‘‘(F) sulfur hexafluoride. 

4 ‘‘(8) INCREMENTAL NUCLEAR GENERATION.— 

5 The term ‘incremental nuclear generation’ means, as 

6 determined by the Administrator and measured in 

7 megawatt hours, the difference between— 

8 ‘‘(A) the quantity of electricity generated 

9 by a nuclear generating unit in a calendar year; 

10 and 

11 ‘‘(B) the quantity of electricity generated 

12 by the nuclear generating unit in calendar year 

13 1990. 

14 ‘‘(9) NEW UNIT.—The term ‘new unit’ means 

15 an affected unit that has operated for not more than 

16 3 years and is not eligible to receive— 

17 ‘‘(A) sulfur dioxide allowances under sec18 tion 417(b); 

19 ‘‘(B) nitrogen oxide allowances under sec20 tion 703(c)(2); or 

21 ‘‘(C) carbon dioxide allowances under sec22 tion 705(d). 

23 ‘‘(10) NITROGEN OXIDE ALLOWANCE.—The 

24 term ‘nitrogen oxide allowance’ means an authoriza25 tion allocated by the Administrator under this title 


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1 to emit 1 ton of nitrogen oxides during or after a 

2 specified calendar year. 

3 ‘‘(11) NUCLEAR GENERATING UNIT.—The term 

4 ‘nuclear generating unit’ means an electric gener5 ating facility that— 

6 ‘‘(A) uses nuclear energy to supply elec7 tricity to the electric power grid; and 

8 ‘‘(B) entered operation in calendar year 

9 1990 or earlier. 

10 ‘‘(12) RENEWABLE ENERGY.—The term ‘renew11 able energy’ means electric energy generated from 

12 solar energy, wind, hydroelectric energy, biomass, 

13 landfill gas, ocean energy (including tidal, wave, cur14 rent, and thermal energy), or geothermal energy. 

15 ‘‘(13) SEQUESTRATION.—The term ‘sequestra16 tion’ means the action of sequestering carbon by— 

17 ‘‘(A) enhancing a natural carbon sink 

18 (such as through afforestation); or 

19 ‘‘(B)(i) capturing the carbon dioxide emit20 ted from a fossil fuel-based energy system; and 

21 ‘‘(ii)(I) storing the carbon in a geologic 

22 formation for not less than 300 years in a man23 ner that prevents any release of the carbon di24 oxide in a quantity greater than 1 percent of 

25 the total quantity so stored; or 


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1 ‘‘(II) converting the carbon to a benign 

2 solid material through a biological or chemical 

3 process. 

4 ‘‘(14) SULFUR DIOXIDE ALLOWANCE.—The 

5 term ‘sulfur dioxide allowance’ has the meaning 

6 given the term ‘allowance’ in section 402. 

7 ‘‘SEC. 702. NATIONAL POLLUTANT TONNAGE LIMITATIONS. 

8 ‘‘(a) SULFUR DIOXIDE.—The annual tonnage limita9 tion for emissions of sulfur dioxide from affected units in 

10 the United States shall be equal to— 

11 ‘‘(1) for each of calendar years 2012 through 

12 2014, 3,500,000 tons; and 

13 ‘‘(2) for calendar year 2015 and each calendar 

14 year thereafter, 2,000,000 tons. 

15 ‘‘(b) NITROGEN OXIDES.— 

16 ‘‘(1) DEFINITIONS.—In this subsection: 

17 ‘‘(A) ZONE 1 STATE.—The term ‘Zone 1 

18 State’ means the District of Columbia or any of 

19 the States of Alabama, Arkansas, Connecticut, 

20 Delaware, Florida, Georgia, Illinois, Indiana, 

21 Iowa, Kentucky, Louisiana, Maine, Maryland, 

22 Massachusetts, Michigan, Minnesota, Mis23 sissippi, Missouri, New Hampshire, New Jer24 sey, New York, North Carolina, Ohio, Pennsyl25 vania, Rhode Island, South Carolina, TenVerDate Aug 31 2005 18:53 Apr 22, 2007 Jkt 059200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\S1177.IS S1177

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1 nessee, Texas, Vermont, Virginia, West Vir2 ginia, and Wisconsin. 

3 ‘‘(B) ZONE 2 STATE.—The term ‘Zone 2 

4 State’ means any State within the 48 contig5 uous States that is not a Zone 1 State. 

6 ‘‘(2) APPLICABILITY.— 

7 ‘‘(A) ZONE 1 PROHIBITION.— 

8 ‘‘(i) IN GENERAL.—Beginning on Jan9 uary 1, 2012, it shall be unlawful for an 

10 affected unit in a Zone 1 State to emit a 

11 total amount of nitrogen oxides during a 

12 year in excess of the number of nitrogen 

13 oxide allowances held for the affected unit 

14 for that year by the owner or operator of 

15 the affected unit. 

16 ‘‘(ii) LIMITATION.—Only nitrogen 

17 oxide allowances under paragraph (3)(A) 

18 shall be held in order to meet the require19 ments of clause (i). 

20 ‘‘(B) ZONE 2 PROHIBITION.— 

21 ‘‘(i) IN GENERAL.—Beginning on Jan22 uary 1, 2012, it shall be unlawful for an 

23 affected unit in a Zone 2 State to emit a 

24 total amount of nitrogen oxides during a 

25 year in excess of the number of nitrogen 


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1 oxide allowances held for the affected unit 

2 for that year by the owner or operator of 

3 the affected unit. 

4 ‘‘(ii) LIMITATION.—Only nitrogen 

5 oxide allowances under paragraph (3)(B) 

6 shall be held in order to meet the require7 ments of clause (i). 

8 ‘‘(3) LIMITATIONS ON TOTAL EMISSIONS.— 

9 ‘‘(A) ZONE 1 LIMITATIONS.—The Adminis10 trator shall allocate an annual tonnage limita11 tion for emissions of nitrogen oxides from af12 fected units in the Zone 1 States in an amount 

13 equal to— 

14 ‘‘(i) for each of calendar years 2012 

15 through 2014, 1,390,000 tons; and 

16 ‘‘(ii) for calendar year 2015 and each 

17 calendar year thereafter, 1,300,000 tons. 

18 ‘‘(B) ZONE 2 LIMITATIONS.—The Adminis19 trator shall allocate an annual tonnage limita20 tion for emissions of nitrogen oxides from af21 fected units in the Zone 2 States in an amount 

22 equal to— 

23 ‘‘(i) for each of calendar years 2012 

24 through 2014, 400,000 tons; and 


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1 ‘‘(ii) for calendar year 2015 and each 

2 calendar year thereafter, 320,000 tons. 

3 ‘‘(c) MERCURY.—The emission of mercury from af4 fected units shall be limited in accordance with section 

5 704. 

6 ‘‘(d) CARBON DIOXIDE.— 

7 ‘‘(1) IN GENERAL.—The annual tonnage limita8 tion for emissions of carbon dioxide from affected 

9 units in the United States shall be equal to, as de10 termined by the Administrator based on certified 

11 and quality-assured continuous emissions monitoring 

12 data for carbon dioxide reported to the Adminis13 trator by affected units in accordance with this 

14 Act— 

15 ‘‘(A) for each of calendar years 2012 

16 through 2014, the quantity of emissions emitted 

17 from affected units in calendar year 2006; 

18 ‘‘(B) for calendar year 2015, the quantity 

19 of emissions emitted from affected units in cal20 endar year 2001; 

21 ‘‘(C) for each of calendar years 2016 

22 through 2019, the aggregate quantity of emis23 sions emitted from affected units during the 

24 calendar year that is 1 percent less than the ag25 gregate quantity of emissions from affected 


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1 units allowed pursuant to this section during 

2 the preceding calendar year; and 

3 ‘‘(D) for calendar year 2020 and each cal4 endar year thereafter, the aggregate quantity of 

5 emissions emitted during the calendar year that 

6 is 1.5 percent less than the aggregate quantity 

7 of emissions from affected units allowed pursu8 ant to this section during the preceding cal9 endar year. 

10 ‘‘(2) ADDITIONAL LIMITATIONS.—For calendar 

11 year 2030 and each calendar year thereafter, in ac12 cordance with subsection (e), the Administrator shall 

13 take into consideration the practicability of increas14 ing the reduction in emissions of carbon dioxide re15 quired for the calendar year to at least 3 percent 

16 less than the aggregate quantity of emissions emit17 ted during the preceding calendar year. 

18 ‘‘(e) REVIEW OF ANNUAL TONNAGE LIMITATIONS

19 AND MERCURY EMISSIONS REQUIREMENTS.— 

20 ‘‘(1) DETERMINATION BY ADMINISTRATOR.— 

21 Not later than 10 years after the date of enactment 

22 of this title and every 10 years thereafter, the Ad23 ministrator shall determine— 

24 ‘‘(A) after considering impacts on human 

25 health, the environment, the economy, and 


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1 costs, whether 1 or more of the annual tonnage 

2 limitations should be revised; and 

3 ‘‘(B) whether the mercury emission re4 quirements under section 704 should be revised 

5 in accordance with the risk standards described 

6 in section 112(f)(2). 

7 ‘‘(2) DETERMINATION NOT TO REVISE.—If the 

8 Administrator determines under paragraph (1) that 

9 no annual tonnage limitation or mercury emission 

10 requirement should be revised, the Administrator 

11 shall publish in the Federal Register— 

12 ‘‘(A) a notice of the determination; and 

13 ‘‘(B) the reasons for the determination. 

14 ‘‘(3) DETERMINATION TO REVISE.—If the Ad15 ministrator determines under paragraph (1) that 1 

16 or more of the annual tonnage limitations or mer17 cury emissions requirements should be revised, the 

18 Administrator shall publish in the Federal Reg19 ister— 

20 ‘‘(A) not later than 10 years and 180 days 

21 after the date of enactment of this title, pro22 posed regulations implementing the revisions; 

23 and 


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1 ‘‘(B) not later than 11 years and 180 days 

2 after the date of enactment of this title, final 

3 regulations implementing the revisions. 

4 ‘‘(4) ADMINISTRATION.—The duty of the Ad5 ministrator to make a determination under para6 graph (1) shall be— 

7 ‘‘(A) considered to be a nondiscretionary 

8 duty; 

9 ‘‘(B) enforceable through a citizen suit 

10 under section 304; and 

11 ‘‘(C) subject to rulemaking procedures and 

12 judicial review under section 307. 

13 ‘‘(5) REQUIREMENT.—No revision of an annual 

14 tonnage limitation or mercury emission requirement 

15 under this subsection shall result in a limitation or 

16 emission requirement that is less stringent than an 

17 existing applicable requirement under this title. 

18 ‘‘(f) REDUCTION OF EMISSIONS FROM SPECIFIED

19 AFFECTED UNITS.—Notwithstanding the annual tonnage 

20 limitations and mercury emissions requirements estab21 lished under this section, the Federal Government or a 

22 State government may require that emissions from a spec23 ified affected unit be reduced. 

24 ‘‘(g) GENERAL ENFORCEMENT.— 


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1 ‘‘(1) IN GENERAL.—It shall be unlawful for any 

2 individual or entity subject to this title to violate any 

3 requirement or prohibition under this title. 

4 ‘‘(2) TREATMENT OF EXCESS EMISSIONS.—In 

5 calculating any penalty for violation of this title, 

6 each ton of emissions of sulfur dioxide, nitrogen ox7 ides, mercury, or a greenhouse gas emitted by a cov8 ered unit during a calendar year in excess of the al9 lowances held for use by the covered unit for the cal10 endar year shall be considered to be a separate viola11 tion of the applicable limitation under this title. 

12 ‘‘SEC. 703. NITROGEN OXIDE TRADING PROGRAM. 

13 ‘‘(a) REGULATIONS.— 

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

15 2010, the Administrator shall promulgate regula16 tions to establish for affected units in the United 

17 States a nitrogen oxide allowance trading program. 

18 ‘‘(2) REQUIREMENTS.—Regulations promul19 gated under paragraph (1) shall establish require20 ments for the allowance trading program under this 

21 section, including requirements concerning— 

22 ‘‘(A)(i) the generation, allocation, issuance, 

23 recording, tracking, transfer, and use of nitro24 gen oxide allowances; and 


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1 ‘‘(ii) the public availability of all informa2 tion concerning the activities described in clause 

3 (i) that is not confidential; 

4 ‘‘(B) compliance with subsection (e)(1); 

5 ‘‘(C) the monitoring and reporting of emis6 sions under paragraphs (2) and (3) of sub7 section (e); and 

8 ‘‘(D) excess emission penalties under sub9 section (e)(4). 

10 ‘‘(3) MIXED FUEL, COGENERATION FACILITIES

11 AND COMBINED HEAT AND POWER FACILITIES.— 

12 The Administrator shall promulgate such regulations 

13 as the Administrator determines to be necessary to 

14 ensure the equitable issuance of allowances to— 

15 ‘‘(A) facilities that use more than 1 energy 

16 source to produce electricity; and 

17 ‘‘(B) facilities that produce electricity in 

18 addition to another service or product. 

19 ‘‘(b) NEW UNIT RESERVES.— 

20 ‘‘(1) ESTABLISHMENT.—For each calendar 

21 year, based on projections of electricity output from 

22 new units, the Administrator, in consultation with 

23 the Secretary of Energy, shall establish by regula24 tion a reserve of nitrogen oxide allowances to be set 

25 aside for use by new units in Zone 1 States, and a 


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1 reserve of nitrogen oxide allowances to be set aside 

2 for use by new units in Zone 2 States, that is not 

3 less than 5 percent of the total allowances allocated 

4 to affected units for the calendar year. 

5 ‘‘(2) UNUSED ALLOWANCES.—For each cal6 endar year, the Administrator shall reallocate, to all 

7 affected units, any unused nitrogen oxide allowances 

8 from the new unit reserve established under para9 graph (1) in the proportion that— 

10 ‘‘(A) the number of allowances allocated to 

11 each affected unit for the calendar year; bears 

12 to 

13 ‘‘(B) the number of allowances allocated to 

14 all affected units for the calendar year. 

15 ‘‘(c) NITROGEN OXIDE ALLOCATIONS.— 

16 ‘‘(1) TIMING OF ALLOCATIONS.—The Adminis17 trator shall allocate nitrogen oxide allowances to af18 fected units by not later than December 31 of cal19 endar year 2008 and each calendar year thereafter, 

20 for the fourth calendar year that begins after that 

21 December 31. 

22 ‘‘(2) ALLOCATIONS TO AFFECTED UNITS THAT

23 ARE NOT NEW UNITS.— 

24 ‘‘(A) ZONE 1 STATES.—The Administrator 

25 shall allocate, to each affected unit in a Zone 1 


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1 State that is not a new unit, a quantity of ni2 trogen oxide allowances that is equal to the 

3 product obtained by multiplying— 

4 ‘‘(i) the quantity of nitrogen oxide al5 lowances available for allocation under 

6 paragraph (3)(A); and 

7 ‘‘(ii) the quotient obtained by divid8 ing— 

9 ‘‘(I) the annual average quantity 

10 of electricity generated by the unit 

11 during the most recent 3-calendar 

12 year period for which data are avail13 able, updated each calendar year and 

14 measured in megawatt hours; and 

15 ‘‘(II) the total of the average 

16 quantities described in subclause (I) 

17 with respect to all affected units in all 

18 Zone 1 States. 

19 ‘‘(B) ZONE 2 STATES.—The Administrator 

20 shall allocate, to each affected unit in a Zone 2 

21 State that is not a new unit, a quantity of ni22 trogen oxide allowances that is equal to the 

23 product obtained by multiplying— 


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1 ‘‘(i) the quantity of nitrogen oxide al2 lowances available for allocation under 

3 paragraph (3)(B); and 

4 ‘‘(ii) the quotient obtained by divid5 ing— 

6 ‘‘(I) the annual average quantity 

7 of electricity generated by the unit 

8 during the most recent 3-calendar 

9 year period for which data are avail10 able, updated each calendar year and 

11 measured in megawatt hours; and 

12 ‘‘(II) the total of the average 

13 quantities described in subclause (I) 

14 with respect to all affected units in all 

15 Zone 2 States. 

16 ‘‘(3) QUANTITY TO BE ALLOCATED.— 

17 ‘‘(A) ZONE 1 STATES.—For each calendar 

18 year, the quantity of nitrogen oxide allowances 

19 allocated under paragraph (2)(A) to affected 

20 units that are not new units shall be equal to 

21 the difference between— 

22 ‘‘(i) the annual tonnage limitation for 

23 emissions of nitrogen oxides from affected 

24 units specified in section 702(b)(3)(A) for 

25 the calendar year; and 


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1 ‘‘(ii) the quantity of nitrogen oxide al2 lowances placed in the new unit reserve es3 tablished under subsection (b) for the cal4 endar year. 

5 ‘‘(B) ZONE 2 STATES.—For each calendar 

6 year, the quantity of nitrogen oxide allowances 

7 allocated under paragraph (2)(B) to affected 

8 units that are not new units shall be equal to 

9 the difference between— 

10 ‘‘(i) the annual tonnage limitation for 

11 emissions of nitrogen oxides from affected 

12 units specified in section 702(b)(3)(B) for 

13 the calendar year; and 

14 ‘‘(ii) the quantity of nitrogen oxide al15 lowances placed in the new unit reserve es16 tablished under subsection (b) for the cal17 endar year. 

18 ‘‘(4) ADJUSTMENT OF ALLOCATIONS.—If, for 

19 any calendar year, the total quantities of allowances 

20 allocated under paragraph (2) are not equal to the 

21 applicable quantities determined under paragraph 

22 (3), the Administrator shall adjust the quantities of 

23 allowances allocated to affected units that are not 

24 new units on a pro-rata basis so that the quantities 


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1 are equal to the applicable quantities determined 

2 under paragraph (3). 

3 ‘‘(5) ALLOCATION TO NEW UNITS.— 

4 ‘‘(A) METHODOLOGY.—The Administrator 

5 shall promulgate regulations to establish a 

6 methodology for allocating nitrogen oxide allow7 ances to new units. 

8 ‘‘(B) QUANTITY OF NITROGEN OXIDE AL9 LOWANCES ALLOCATED.—The Administrator 

10 shall determine the quantity of nitrogen oxide 

11 allowances to be allocated to each new unit 

12 based on the projected emissions from the new 

13 unit. 

14 ‘‘(6) ALLOWANCE NOT A PROPERTY RIGHT.—A 

15 nitrogen oxide allowance— 

16 ‘‘(A) is not a property right; and 

17 ‘‘(B) may be terminated or limited by the 

18 Administrator. 

19 ‘‘(7) NO JUDICIAL REVIEW.—An allocation of 

20 nitrogen allowances by the Administrator under this 

21 subsection shall not be subject to judicial review. 

22 ‘‘(d) NITROGEN OXIDE ALLOWANCE TRANSFER SYS23 TEM.— 

24 ‘‘(1) USE OF ALLOWANCES.—The regulations 

25 promulgated under subsection (a)(1) shall— 


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1 ‘‘(A) prohibit the use (but not the transfer 

2 in accordance with paragraph (3)) of any nitro3 gen oxide allowance before the calendar year for 

4 which the allowance is allocated; 

5 ‘‘(B) provide that unused nitrogen oxide 

6 allowances may be carried forward and added 

7 to nitrogen oxide allowances allocated for subse8 quent years; and 

9 ‘‘(C) provide that unused nitrogen oxide al10 lowances may be transferred by— 

11 ‘‘(i) the person to which the allow12 ances are allocated; or 

13 ‘‘(ii) any person to which the allow14 ances are transferred. 

15 ‘‘(2) USE BY PERSONS TO WHICH ALLOWANCES

16 ARE TRANSFERRED.—Any person to which nitrogen 

17 oxide allowances are transferred under paragraph 

18 (1)(C)— 

19 ‘‘(A) may use the nitrogen oxide allow20 ances in the calendar year for which the nitro21 gen oxide allowances were allocated, or in a 

22 subsequent calendar year, to demonstrate com23 pliance with subsection (e)(1); or 


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1 ‘‘(B) may transfer the nitrogen oxide al2 lowances to any other person for the purpose of 

3 demonstration of that compliance. 

4 ‘‘(3) CERTIFICATION OF TRANSFER.—A trans5 fer of a nitrogen oxide allowance shall not take ef6 fect until a written certification of the transfer, au7 thorized by a responsible official of the person mak8 ing the transfer, is received and recorded by the Ad9 ministrator. 

10 ‘‘(4) PERMIT REQUIREMENTS.—An allocation 

11 or transfer of nitrogen oxide allowances to an af12 fected unit shall, after recording by the Adminis13 trator, be considered to be part of the federally en14 forceable permit of the affected unit under this Act, 

15 without a requirement for any further review or revi16 sion of the permit. 

17 ‘‘(e) COMPLIANCE AND ENFORCEMENT.— 

18 ‘‘(1) IN GENERAL.—For calendar year 2012 

19 and each calendar year thereafter, the operator of 

20 each affected unit shall surrender to the Adminis21 trator a quantity of nitrogen oxide allowances that 

22 is equal to the total tons of nitrogen oxides emitted 

23 by the affected unit during the calendar year. 

24 ‘‘(2) MONITORING SYSTEM.—The Administrator 

25 shall promulgate regulations requiring— 


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1 ‘‘(A) operation, reporting, and certification 

2 of continuous emissions monitoring systems to 

3 accurately measure the quantity of nitrogen ox4 ides that is emitted from each affected unit; 

5 and 

6 ‘‘(B) verification and reporting of nitrogen 

7 oxides emissions at each affected unit. 

8 ‘‘(3) REPORTING.— 

9 ‘‘(A) IN GENERAL.—Not less often than 

10 quarterly, the owner or operator of an affected 

11 unit shall submit to the Administrator a report 

12 on the monitoring of emissions of nitrogen ox13 ides carried out by the owner or operator in ac14 cordance with the regulations promulgated 

15 under paragraph (2). 

16 ‘‘(B) AUTHORIZATION.—Each report sub17 mitted under subparagraph (A) shall be author18 ized by a responsible official of the affected 

19 unit, who shall certify the accuracy of the re20 port. 

21 ‘‘(C) PUBLIC REPORTING.—The Adminis22 trator shall make available to the public, 

23 through 1 or more published reports and 1 or 

24 more forms of electronic media, data concerning 


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1 the emissions of nitrogen oxides from each af2 fected unit. 

3 ‘‘(4) EXCESS EMISSIONS.— 

4 ‘‘(A) IN GENERAL.—The owner or operator 

5 of an affected unit that emits nitrogen oxides in 

6 excess of the nitrogen oxide allowances that the 

7 owner or operator holds for use for the affected 

8 unit for the calendar year shall— 

9 ‘‘(i) pay an excess emissions penalty 

10 determined under subparagraph (B); and 

11 ‘‘(ii) offset the excess emissions by at 

12 least an equal quantity in the following cal13 endar year or such other period as the Ad14 ministrator shall prescribe. 

15 ‘‘(B) DETERMINATION OF EXCESS EMIS16 SIONS PENALTY.—The excess emissions penalty 

17 for nitrogen oxides shall be equal to the product 

18 obtained by multiplying— 

19 ‘‘(i) the number of tons of nitrogen 

20 oxides emitted in excess of the total quan21 tity of nitrogen oxide allowances held; and 

22 ‘‘(ii) 2 times the average price of a ni23 trogen oxide allowance for the Zone and 

24 calendar year in which the excess emissions 


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1 occurred, as determined by the Adminis2 trator. 

3 ‘‘(f) TREATMENT OF EXISTING PROGRAMS.— 

4 ‘‘(1) IN GENERAL.—Except as provided in para5 graph (2), the provisions of the rule of the Adminis6 trator entitled the ‘Clean Air Interstate Rule’ (70 

7 Fed. Reg. 25162 (May 12, 2005)) (or a successor 

8 regulation) providing for the establishment of an an9 nual emissions cap and trading program for oxides 

10 of nitrogen shall terminate on the later of— 

11 ‘‘(A) the effective date of the regulations 

12 promulgated under this section; and 

13 ‘‘(B) January 1, 2012. 

14 ‘‘(2) EXCEPTION.—Notwithstanding paragraph 

15 (1), any provision of the rule referred to in that 

16 paragraph (or a successor regulation) relating to the 

17 establishment of a seasonal ozone emission cap-and18 trade program for nitrogen oxides shall remain in 

19 full force and effect. 

20 ‘‘SEC. 704. MERCURY PROGRAM. 

21 ‘‘(a) DEFINITION OF INLET MERCURY.—In this sec22 tion, the term ‘inlet mercury’ means the quantity of mer23 cury found— 

24 ‘‘(1) in the as-fired coal of an affected unit; or 


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1 ‘‘(2) for an affected unit using coal that is sub2 jected to an advanced coal cleaning technology, in 

3 the as-mined coal of the affected unit. 

4 ‘‘(b) ANNUAL LIMITATION FOR CERTAIN UNITS.— 

5 On an annual average calendar year basis with respect to 

6 inlet mercury, an affected unit that commences operation 

7 on or after the date of enactment of this title shall be 

8 subject to the less stringent emission limitation of— 

9 ‘‘(1) 90 percent capture of inlet mercury; or 

10 ‘‘(2) an emission rate of 0.0060 lbs/GWh. 

11 ‘‘(c) ANNUAL LIMITATION FOR EXISTING UNITS.— 

12 An affected unit in operation on the date of enactment 

13 of this title shall be subject to the following emission limi14 tations on an annual average calendar year basis with re15 spect to inlet mercury: 

16 ‘‘(1) CALENDAR YEARS 2012 THROUGH 2014.— 

17 For the period beginning on January 1, 2012, and 

18 ending on December 31, 2014, the less stringent 

19 limitation of— 

20 ‘‘(A) 60 percent capture of inlet mercury; 

21 and 

22 ‘‘(B) an emission rate of 0.02 lbs/GWh. 

23 ‘‘(2) CALENDAR YEAR 2015 AND THERE24 AFTER.—For calendar year 2015 and each calendar 

25 year thereafter, the less stringent limitation of— 


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1 ‘‘(A) 90 percent capture of inlet mercury; 

2 and 

3 ‘‘(B) an emission rate of 0.0060 lbs/GWh. 

4 ‘‘(d) AVERAGING ACROSS UNITS.—An owner or oper5 ator of an affected unit may demonstrate compliance with 

6 the annual average limitations under subsections (b) and 

7 (c) by averaging emissions from all affected units at a sin8 gle facility. 

9 ‘‘(e) MONITORING SYSTEM.—The Administrator shall 

10 promulgate regulations requiring— 

11 ‘‘(1) operation, reporting, and certification of 

12 continuous emissions monitoring systems to accu13 rately measure the quantity of mercury that is emit14 ted from each affected unit; and 

15 ‘‘(2) verification and reporting of mercury emis16 sions at each affected unit. 

17 ‘‘(f) REPORTING.— 

18 ‘‘(1) IN GENERAL.—Not less often than quar19 terly, the owner or operator of an affected unit shall 

20 submit to the Administrator a report on the moni21 toring of emissions of mercury carried out by the 

22 owner or operator in accordance with the regulations 

23 promulgated under subsection (e). 

24 ‘‘(2) AUTHORIZATION.—Each report submitted 

25 under paragraph (1) shall be authorized by a reVerDate Aug 31 2005 18:53 Apr 22, 2007 Jkt 059200 PO 00000 Frm 00036 Fmt 6652 Sfmt 6201 E:\BILLS\S1177.IS S1177

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1 sponsible official of the affected unit, who shall cer2 tify the accuracy of the report. 

3 ‘‘(3) PUBLIC REPORTING.—The Administrator 

4 shall make available to the public, through 1 or 

5 more published reports and 1 or more forms of elec6 tronic media, data concerning the emission of mer7 cury from each affected unit. 

8 ‘‘(g) EXCESS EMISSIONS.— 

9 ‘‘(1) IN GENERAL.—The owner or operator of 

10 an affected unit that emits mercury in excess of the 

11 emission limitation described in subsection (b) or (c) 

12 shall pay an excess emissions penalty determined 

13 under paragraph (2). 

14 ‘‘(2) DETERMINATION OF EXCESS EMISSIONS

15 PENALTY.—The excess emissions penalty for mer16 cury shall be an amount equal to $50,000 for each 

17 pound of mercury emitted in excess of the emission 

18 limitation described in subsection (b) or (c), as pro19 rated for each fraction of a pound. 

20 ‘‘SEC. 705. CARBON DIOXIDE ALLOWANCE TRADING PRO21 GRAM. 

22 ‘‘(a) DEFINITIONS.—In this section: 

23 ‘‘(1) ALLOWANCE.—The term ‘allowance’ 

24 means— 

25 ‘‘(A) a carbon dioxide allowance; 


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1 ‘‘(B) an offset allowance; or 

2 ‘‘(C) an early reduction allowance. 

3 ‘‘(2) EARLY REDUCTION ALLOWANCE.—The 

4 term ‘early reduction allowance’ means a carbon di5 oxide allowance issued under subsection (g) for a 

6 project in the United States to reduce emissions of 

7 greenhouse gases or to sequester greenhouse gases 

8 that is carried out in calendar years 2000 through 

9 2012. 

10 ‘‘(3) OFFSET ALLOWANCE.—The term ‘offset 

11 allowance’ means a carbon dioxide allowance issued 

12 under subsection (e) for a project to reduce emis13 sions of greenhouse gases or to sequester greenhouse 

14 gases. 

15 ‘‘(b) REGULATIONS.— 

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

17 after the date of enactment of this title, the Admin18 istrator shall promulgate regulations to establish an 

19 allowance trading program for covered units in the 

20 United States. 

21 ‘‘(2) REQUIREMENTS.—Regulations promul22 gated under paragraph (1) shall establish require23 ments for the carbon dioxide allowance trading pro24 gram under this section, including requirements con25 cerning— 


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1 ‘‘(A) the allocation, issuance, and use of 

2 carbon dioxide allowances; 

3 ‘‘(B) the reserve and allocation of carbon 

4 dioxide allowances for new units and new re5 newable energy units; 

6 ‘‘(C) the issuance, certification, and use of 

7 offset allowances; 

8 ‘‘(D) the issuance, certification, and use of 

9 early reduction allowances; 

10 ‘‘(E) the transfer of allowances; 

11 ‘‘(F) the monitoring, tracking, and report12 ing of carbon dioxide emissions; 

13 ‘‘(G) compliance and enforcement; and 

14 ‘‘(H) the public availability of carbon diox15 ide emissions information. 

16 ‘‘(3) INTERACTION WITH DEPARTMENT OF AG17 RICULTURE.— 

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

19 subparagraph (B), the Administrator shall pro20 mulgate all regulations relating to offsets under 

21 this title. 

22 ‘‘(B) OFFSETS.—The Administrator shall 

23 promulgate regulations relating to offsets pro24 duced by agricultural sequestration practices in 

25 consultation with the Secretary of Agriculture. 


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1 ‘‘(c) NEW UNIT RESERVE.— 

2 ‘‘(1) ESTABLISHMENT.—For each calendar 

3 year, based on projections of electricity output from 

4 new units, the Administrator, in consultation with 

5 the Secretary of Energy, shall establish by regula6 tion a reserve of carbon dioxide allowances to be al7 located to new covered units for the calendar year. 

8 ‘‘(2) LIMITATIONS.— 

9 ‘‘(A) IN GENERAL.—The number of allow10 ances allocated under paragraph (1) during a 

11 calendar year shall be not more than 2 percent 

12 of the total number of allowances allocated to 

13 covered units for the calendar year. 

14 ‘‘(B) REQUIREMENT.—Notwithstanding 

15 any other provision of this Act, no allowance 

16 shall be allocated to any coal-fired covered unit 

17 or any coal-fired new unit unless that covered 

18 unit or new unit— 

19 ‘‘(i) is powered by a qualifying ad20 vanced clean coal technology (as defined 

21 pursuant to subsection (d)(2)); or 

22 ‘‘(ii) entered operation before January 

23 1, 2007. 

24 ‘‘(3) UNUSED ALLOWANCES.—For each cal25 endar year, the Administrator shall reallocate, to all 


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1 covered units, any unused carbon dioxide allowances 

2 from the new unit reserve established under para3 graph (1) in the proportion that— 

4 ‘‘(A) the number of allowances allocated to 

5 each covered unit for the calendar year; bears 

6 to 

7 ‘‘(B) the number of allowances allocated to 

8 all covered units for the calendar year. 

9 ‘‘(d) INCENTIVES FOR CLEAN COAL TECHNOLOGY.— 

10 ‘‘(1) ESTABLISHMENT.—The Administrator 

11 shall establish by regulation a reserve of carbon di12 oxide allowances to be set aside during a calendar 

13 year to encourage the deployment of clean coal tech14 nologies. 

15 ‘‘(2) DEFINING QUALIFYING ADVANCED CLEAN

16 COAL TECHNOLOGIES.— 

17 ‘‘(A) DEFINITION OF AVAILABLE TECH18 NOLOGY.—In this paragraph, the term ‘avail19 able technology’ means any coal combustion 

20 technology that achieves an output-based emis21 sion rate of, as applicable— 

22 ‘‘(i) 1,100 pounds of carbon dioxide 

23 per megawatt-hour; and 

24 ‘‘(ii) 0.0060 pounds of mercury per 

25 gigawatt-hour. 


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1 ‘‘(B) CRITERIA AND STANDARDS.—Not 

2 later than July 1, 2009, the Administrator shall 

3 establish criteria and standards to define the 

4 term ‘qualifying advanced clean coal technology’ 

5 with respect to electric power generation. 

6 ‘‘(C) REQUIREMENT.—In establishing cri7 teria and standards under subparagraph (B), 

8 the Administrator shall ensure that the quali9 fying advanced clean coal technologies represent 

10 an advance in available technology, taking into 

11 consideration— 

12 ‘‘(i) net thermal efficiency; 

13 ‘‘(ii) measures to capture and seques14 ter carbon dioxide; and 

15 ‘‘(iii) output-based emission rates 

16 for— 

17 ‘‘(I) carbon dioxide; 

18 ‘‘(II) sulfur dioxide; 

19 ‘‘(III) oxides of nitrogen; 

20 ‘‘(IV) filterable and condensable 

21 particulate matter; and 

22 ‘‘(V) mercury. 

23 ‘‘(D) REVIEW AND REVISION.— 

24 ‘‘(i) IN GENERAL.—Not later than 

25 July 1, 2010, and each July 1 thereafter, 


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1 the Administrator shall review and, if ap2 propriate, revise the criteria and standards 

3 under subparagraph (B) based on techno4 logical advances during the preceding cal5 endar year. 

6 ‘‘(ii) NOTICE AND COMMENT NOT RE7 QUIRED.—Subject to clause (iii), after the 

8 initial criteria and standards are estab9 lished under subparagraph (B), no subse10 quent review or revision under this sub11 paragraph shall be subject to the notice 

12 and comment provisions of section 553 of 

13 title 5, United States Code. 

14 ‘‘(iii) EFFECT.—Nothing in clause (ii) 

15 precludes the application of the notice and 

16 comment provisions of section 553 of title 

17 5, United States Code, as the Adminis18 trator determines to be practicable. 

19 ‘‘(3) QUANTITY AND DISTRIBUTION OF ALLOW20 ANCES.— 

21 ‘‘(A) QUANTITY.—The Administrator shall 

22 set aside by regulation an annual quantity of 

23 carbon dioxide allowances for qualifying ad24 vanced clean coal technologies equal to 3 per25 cent of the annual tonnage limitation estabVerDate Aug 31 2005 18:53 Apr 22, 2007 Jkt 059200 PO 00000 Frm 00043 Fmt 6652 Sfmt 6201 E:\BILLS\S1177.IS S1177

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1 lished under section 702(d) for the period be2 ginning on January 1, 2012, and ending on De3 cember 31, 2025. 

4 ‘‘(B) DISTRIBUTION.— 

5 ‘‘(i) IN GENERAL.—The Administrator 

6 shall establish by regulation a methodology 

7 for distributing the carbon dioxide allow8 ances set aside under subparagraph (A) to 

9 encourage the deployment of advanced 

10 clean coal technologies. 

11 ‘‘(ii) REVIEW AND REVISION.— 

12 ‘‘(I) IN GENERAL.—Not later 

13 than July 1, 2009, and each July 1 

14 thereafter, the Administrator shall re15 view and, if appropriate, revise the 

16 criteria and standards under clause (i) 

17 based on technological advances dur18 ing the preceding calendar year. 

19 ‘‘(II) NOTICE AND COMMENT

20 NOT REQUIRED.—Subject to subclause 

21 (III), after the initial criteria and 

22 standards are established under clause 

23 (i), no subsequent review or revision 

24 under this subparagraph shall be sub25 ject to the notice and comment proviVerDate Aug 31 2005 18:53 Apr 22, 2007 Jkt 059200 PO 00000 Frm 00044 Fmt 6652 Sfmt 6201 E:\BILLS\S1177.IS S1177

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1 sions of section 553 of title 5, United 

2 States Code. 

3 ‘‘(III) EFFECT.—Nothing in sub4 clause (II) precludes the application of 

5 the notice and comment provisions of 

6 section 553 of title 5, United States 

7 Code, as the Administrator deter8 mines to be practicable. 

9 ‘‘(4) TREATMENT OF CORRESPONDENCE.—The 

10 correspondence of the Office of Air Quality Planning 

11 and Standards addressing best available control 

12 technology requirements for proposed coal-fired 

13 power plant projects and dated December 13, 

14 2005— 

15 ‘‘(A) shall be considered to be inconsistent 

16 with section 169(3); and 

17 ‘‘(B) shall be treated as void and of no ef18 fect as of the date of issuance of the cor19 respondence. 

20 ‘‘(e) CARBON DIOXIDE ALLOWANCE ALLOCATION TO

21 COVERED UNITS THAT ARE NOT NEW UNITS AND CLEAN

22 COAL TECHNOLOGY RESERVE.— 

23 ‘‘(1) TIMING OF ALLOCATIONS.—The Adminis24 trator shall allocate carbon dioxide allowances to 

25 covered units that are not new units— 


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1 ‘‘(A) not later than December 31, 2008, 

2 for calendar year 2012; and 

3 ‘‘(B) not later than December 31 of cal4 endar year 2009 and each calendar year there5 after, for the fourth calendar year that begins 

6 after that December 31. 

7 ‘‘(2) ALLOCATIONS.— 

8 ‘‘(A) IN GENERAL.—The Administrator 

9 shall allocate to each covered unit that is not a 

10 new unit a quantity of carbon dioxide allow11 ances that is equal to the product obtained by 

12 multiplying— 

13 ‘‘(i) the quantity of carbon dioxide al14 lowances available for allocation under sub15 paragraph (B); and 

16 ‘‘(ii) the quotient obtained by divid17 ing— 

18 ‘‘(I) the annual average quantity 

19 of electricity generated by the unit 

20 during the most recent 3-calendar 

21 year period for which data are avail22 able, updated each calendar year and 

23 measured in megawatt hours; and 


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1 ‘‘(II) the total of the average 

2 quantities described in subclause (I) 

3 with respect to all such units. 

4 ‘‘(B) QUANTITY TO BE ALLOCATED.—For 

5 each calendar year, the quantity of carbon diox6 ide allowances allocated under subparagraph 

7 (A) to covered units that are not new units 

8 shall be equal to the difference between— 

9 ‘‘(i) the annual tonnage limitation for 

10 emissions of carbon dioxide from covered 

11 units specified in section 702(d) for the 

12 calendar year; and 

13 ‘‘(ii) the sum of— 

14 ‘‘(I) the quantity of carbon diox15 ide allowances placed in the new unit 

16 reserve established under subsection 

17 (c) for the calendar year; and 

18 ‘‘(II) the quantity of carbon diox19 ide allowances reserved to provide in20 centives for advanced clean coal tech21 nologies under subsection (d) for the 

22 calendar year. 

23 ‘‘(C) REQUIREMENT.—Notwithstanding 

24 any other provision of this title, no allowance 


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1 shall be allocated to any coal-fired unit that was 

2 previously a new unit unless the unit— 

3 ‘‘(i) is powered by a qualifying ad4 vanced clean coal technology (as defined 

5 pursuant to subsection (d)(2)); or 

6 ‘‘(ii) entered operation before January 

7 1, 2007. 

8 ‘‘(f) OFFSET ALLOWANCES.— 

9 ‘‘(1) REGULATIONS.—Regulations promulgated 

10 pursuant to subsection (b)(1) shall establish require11 ments for the issuance, certification, and use of off12 set allowances for greenhouse gas reduction or se13 questration projects carried out in the United States 

14 or any other country, including requirements— 

15 ‘‘(A) that projects not cause or contribute 

16 to adverse effects on human health or the envi17 ronment; 

18 ‘‘(B) that projects result in greenhouse gas 

19 reductions that are real, surplus, enforceable, 

20 verifiable, permanent, and not used more than 

21 once, as determined by the Administrator; 

22 ‘‘(C) for methodology for calculating the 

23 carbon dioxide equivalent reductions attrib24 utable to projects; 


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1 ‘‘(D) for the monitoring, reporting, and 

2 verification of the greenhouse gas reductions 

3 from projects; and 

4 ‘‘(E) for accounting principles used to 

5 quantify the greenhouse gas reductions of 

6 projects that require— 

7 ‘‘(i) the consideration of all green8 house gas impacts of a project; 

9 ‘‘(ii) the consistent application of ac10 counting principles; 

11 ‘‘(iii) transparency; 

12 ‘‘(iv) to the maximum extent prac13 ticable, accuracy; and 

14 ‘‘(v) the use of conservative assump15 tions in cases in which uncertainties re16 quire the use of assumptions. 

17 ‘‘(2) STATE OFFSET METHODS.—In promul18 gating regulations pursuant to subsection (b)(1), the 

19 Administrator shall take into consideration offset 

20 methods developed, as of the date of enactment of 

21 this title, by the State of California or any other 

22 State pursuant to the Regional Greenhouse Gas Ini23 tiative or a similar regulatory program of com24 parable rigor, as determined by the Administrator. 


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1 ‘‘(3) APPROVED CATEGORIES OF OFFSET

2 PROJECTS.— 

3 ‘‘(A) IN GENERAL.—Greenhouse gas re4 duction or sequestration projects from the fol5 lowing types of operations and projects shall be 

6 eligible to create offsets for use under this sec7 tion: 

8 ‘‘(i) Landfill operations. 

9 ‘‘(ii) Agricultural manure manage10 ment projects. 

11 ‘‘(iii) Agricultural soil sequestration 

12 projects. 

13 ‘‘(iv) Forest based projects, including 

14 conservation-based forest management 

15 projects, reforestation projects, and con16 servation projects. 

17 ‘‘(v) Reduction in emission of sulfur 

18 hexafluoride projects. 

19 ‘‘(vi) Energy efficiency projects. 

20 ‘‘(vii) Wastewater treatment facilities. 

21 ‘‘(viii) Coal mining operations. 

22 ‘‘(ix) Natural gas transmission and 

23 distribution systems. 

24 ‘‘(x) Electrical transmission and dis25 tribution systems. 


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1 ‘‘(xi) Fossil fuel combustion at com2 mercial and residential buildings. 

3 ‘‘(B) PROTOCOLS.— 

4 ‘‘(i) INITIAL PROTOCOLS.—Not later 

5 than January 1, 2009, the Administrator 

6 shall develop specific offset protocols for at 

7 least a majority of the project types de8 scribed in subparagraph (A), with priority 

9 given to project types with the greatest 

10 greenhouse gas reduction or sequestration 

11 potential, as determined by the Adminis12 trator. 

13 ‘‘(ii) SUBSEQUENT PROTOCOLS.—Not 

14 later than January 1, 2010, the Adminis15 trator shall develop a specific offset pro16 tocol for each project type for which a pro17 tocol was not developed under clause (i). 

18 ‘‘(4) CREATION OF ADDITIONAL CATEGORIES

19 OF GREENHOUSE GAS EMISSIONS REDUCTION OFF20 SET PROJECTS.— 

21 ‘‘(A) IN GENERAL.—Subject to subpara22 graph (B), the Administrator, by regulation, 

23 may create additional categories of greenhouse 

24 gas emissions reduction or sequestration offset 

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1 ministrator determines that compliance with the 

2 regulations promulgated pursuant to subsection 

3 (b)(1) is feasible. 

4 ‘‘(B) EXCLUSIONS.—Regulations promul5 gated pursuant to subparagraph (A) shall not 

6 include any greenhouse gas emission reduction 

7 or sequestration offset project (or type of 

8 project) that affects— 

9 ‘‘(i) a motor vehicle (as defined in sec10 tion 216); 

11 ‘‘(ii) a nonroad engine (as defined in 

12 section 216); or 

13 ‘‘(iii) a stationary source (as defined 

14 in section 302) that is not a covered unit. 

15 ‘‘(5) PROHIBITION ON USE.—Notwithstanding 

16 paragraphs (3) and (4), a greenhouse gas emissions 

17 reduction or sequestration offset project shall not be 

18 eligible to receive an offset credit for use under this 

19 section beginning on the date on which the reduction 

20 or sequestration achieved by the project is required 

21 by law (including regulations) or another legally 

22 binding requirement. 

23 ‘‘(g) EARLY REDUCTION ALLOWANCES.— 

24 ‘‘(1) IN GENERAL.—Not later than January 1, 

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1 tions for the issuance, certification, and use of early 

2 reduction allowances for greenhouse gas reduction or 

3 sequestration projects carried out during calendar 

4 years 2000 through 2012. 

5 ‘‘(2) ELIGIBLE PROJECTS.—A greenhouse gas 

6 reduction or sequestration project shall be eligible 

7 for early reduction allowances if the project— 

8 ‘‘(A) is carried out in the United States; 

9 ‘‘(B) meets the regulations promulgated by 

10 the Administrator under paragraph (1) that the 

11 Administrator determines to be applicable to 

12 the project; and 

13 ‘‘(C) was reported— 

14 ‘‘(i) under section 1605(b) of the En15 ergy Policy Act of 1992 (42 U.S.C. 

16 13385(b)); 

17 ‘‘(ii) under a voluntary climate change 

18 program of the Environmental Protection 

19 Agency, such as the Climate Leaders pro20 gram; or 

21 ‘‘(iii) to a State or regional green22 house gas registry. 

23 ‘‘(3) LIMITATION.—The quantity of early re24 duction allowances available for greenhouse gas re25 duction or sequestration projects in calendar years 


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1 2000 through 2012 shall not exceed 10 percent of 

2 the carbon dioxide emission tonnage limitation for 

3 calendar year 2012 under section 702(d). 

4 ‘‘(h) USE AND TRANSFER OF ALLOWANCES.— 

5 ‘‘(1) USE IN OTHER CARBON DIOXIDE ALLOW6 ANCE TRADING PROGRAMS.— 

7 ‘‘(A) IN GENERAL.—Allowances may be 

8 used in any other carbon dioxide allowance 

9 trading program that is approved by the Ad10 ministrator for use of the allowances. 

11 ‘‘(B) MONITORING.—The Administrator 

12 shall review each transfer of an allowance into 

13 or out of the allowance trading program under 

14 this section. 

15 ‘‘(2) USE BEFORE APPLICABLE CALENDAR

16 YEAR.—Allowances may not be used before the cal17 endar year for which the allowance was allocated. 

18 ‘‘(3) TRANSFER.— 

19 ‘‘(A) IN GENERAL.—Notwithstanding para20 graph (2), allowances may be transferred before 

21 the calendar year for which the allowances were 

22 allocated. 

23 ‘‘(B) LIMITATION.—The transfer of an al24 lowance shall not take effect until receipt and 

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1 tification of the transfer, which is executed by 

2 an authorized official of the person making the 

3 transfer. 

4 ‘‘(4) USE BY PERSONS TO WHICH CARBON DI5 OXIDE ALLOWANCES ARE TRANSFERRED.—Any per6 son to which carbon dioxide allowances are trans7 ferred under paragraph (3)(A) may use the carbon 

8 dioxide allowances in the calendar year for which the 

9 carbon dioxide allowances were allocated, or in a 

10 subsequent calendar year, to demonstrate compli11 ance with subsection (i)(1). 

12 ‘‘(5) PERMIT REQUIREMENTS.—An allocation 

13 or transfer of allowances to a covered unit shall be 

14 considered to be part of the federally enforceable 

15 permit of the covered unit under this Act, without 

16 a requirement for further review or revision of the 

17 permit. 

18 ‘‘(i) COMPLIANCE AND ENFORCEMENT.— 

19 ‘‘(1) IN GENERAL.—For the period of calendar 

20 years 2012 and 2013, and for each 2-calendar-year 

21 period thereafter, the owner of each covered unit 

22 shall surrender to the Administrator a quantity of 

23 allowances that is equal to the total tons of carbon 

24 dioxide emitted by the covered unit during the 2-cal25 endar-year period. 


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1 ‘‘(2) EXCESS EMISSIONS.— 

2 ‘‘(A) IN GENERAL.—The owner or operator 

3 of a covered unit that emits carbon dioxide in 

4 excess of the allowances that the owner or oper5 ator holds for use for the covered unit for the 

6 2-calendar-year period shall— 

7 ‘‘(i) pay an excess emissions penalty 

8 determined under subparagraph (B); and 

9 ‘‘(ii) offset the excess emissions by at 

10 least an equal quantity in the following 2- 

11 calendar-year period or such other period 

12 as the Administrator shall prescribe. 

13 ‘‘(B) DETERMINATION OF EXCESS EMIS14 SIONS PENALTY.—The excess emissions penalty 

15 for carbon dioxide shall be equal to the product 

16 obtained by multiplying— 

17 ‘‘(i) the number of tons of carbon di18 oxide emitted in excess of the total quan19 tity of allowances held; and 

20 ‘‘(ii) 2 times the average price of a 

21 carbon dioxide allowance for the 2-cal22 endar-year period in which the excess emis23 sions occurred, as determined by the Ad24 ministrator. 


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1 ‘‘(3) MONITORING SYSTEM.—The Administrator 

2 shall promulgate regulations requiring— 

3 ‘‘(A) operation, reporting, and certification 

4 of continuous emissions monitoring systems to 

5 accurately measure the quantity of carbon diox6 ide that is emitted from each covered unit; and 

7 ‘‘(B) verification and reporting of carbon 

8 dioxide emissions at each covered unit. 

9 ‘‘(4) REPORTING.— 

10 ‘‘(A) IN GENERAL.—Not less often than 

11 quarterly, the owner or operator of a covered 

12 unit shall submit to the Administrator a report 

13 on the monitoring of emissions of carbon diox14 ide carried out by the owner or operator in ac15 cordance with the regulations promulgated 

16 under paragraph (3). 

17 ‘‘(B) AUTHORIZATION.—Each report sub18 mitted under subparagraph (A) shall be author19 ized by a responsible official of the covered unit, 

20 who shall certify the accuracy of the report. 

21 ‘‘(C) PUBLIC REPORTING.—The Adminis22 trator shall make available to the public, 

23 through 1 or more published reports and 1 or 

24 more forms of electronic media, data concerning 


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1 the emission of carbon dioxide from each cov2 ered unit. 

3 ‘‘(j) ALLOWANCE NOT A PROPERTY RIGHT.—An al4 lowance— 

5 ‘‘(1) is not a property right; and 

6 ‘‘(2) may be terminated or limited by the Ad7 ministrator. 

8 ‘‘(k) NO JUDICIAL REVIEW.—An allocation or 

9 issuance of an allowance by the Administrator shall not 

10 be subject to judicial review. 

11 ‘‘SEC. 706. DISTRIBUTION OF ALLOWANCES BETWEEN AUC12 TIONS AND ALLOCATIONS; NATURE OF AL13 LOWANCES. 

14 ‘‘(a) DISTRIBUTION OF ALLOWANCES BETWEEN

15 AUCTIONS AND ALLOCATIONS.— 

16 ‘‘(1) IN GENERAL.—For each calendar year, the 

17 total quantity of allowances to be auctioned and allo18 cated under this title shall be equal to the annual 

19 tonnage limitation for emissions of greenhouse gases 

20 from affected units specified in section 702 for the 

21 calendar year. 

22 ‘‘(2) DISTRIBUTION.—The proportion of allow23 ances to be auctioned pursuant to section 707 and 

24 allocated pursuant to section 705 for each calendar 


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1 year beginning in calendar year 2012 shall be as fol2 lows: 

‘‘Percentages of Allowances To Be Auctioned and Allocated 

Calendar year Percentage to be auctioned 

Percentage to be allocated 

2012 ............................ 18 82 

2013 ............................ 21 79 

2014 ............................ 24 76 

2015 ............................ 27 73 

2016 ............................ 30 70 

2017 ............................ 33 67 

2018 ............................ 36 64 

2019 ............................ 39 61 

2020 ............................ 42 58 

2021 ............................ 45 55 

2022 ............................ 48 52 

2023 ............................ 51 49 

2024 ............................ 54 46 

2025 ............................ 57 43 

2026 ............................ 60 40 

2027 ............................ 63 37 

2028 ............................ 66 34 

2029 ............................ 69 41 

2030 ............................ 72 28 

2031 ............................ 75 25 

2032 ............................ 80 20 

2033 ............................ 85 15 

2034 ............................ 90 10 

2035 ............................ 95 5 

2036 and thereafter .... 100 0 

3 ‘‘(b) NATURE OF ALLOWANCES.—An allowance— 

4 ‘‘(1) shall not be considered to be a property 

5 right; and 

6 ‘‘(2) may be terminated or limited by the Ad7 ministrator. 

8 ‘‘(c) NO JUDICIAL REVIEW.—An auction or alloca9 tion of an allowance by the Administrator shall not be sub10 ject to judicial review. 

11 ‘‘SEC. 707. AUCTION OF ALLOWANCES. 

12 ‘‘(a) IN GENERAL.—Not later than 2 years after the 

13 date of enactment of this title, the Administrator shall 


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1 promulgate regulations establishing a procedure for the 

2 auction of the quantity of allowances specified in section 

3 706(a) for each calendar year. 

4 ‘‘(b) DEPOSIT OF PROCEEDS.—The Administrator 

5 shall deposit all proceeds from auctions conducted under 

6 this section in the Fund for use in accordance with section 

7 708. 

8 ‘‘SEC. 708. CLIMATE ACTION TRUST FUND. 

9 ‘‘(a) ESTABLISHMENT AND ADMINISTRATION.— 

10 ‘‘(1) IN GENERAL.—There is established in the 

11 general fund of the Treasury a fund, to be known 

12 as the ‘Climate Action Trust Fund’, consisting of— 

13 ‘‘(A) such amounts as are deposited in the 

14 Fund under paragraph (2); and 

15 ‘‘(B) any interest earned on investment of 

16 amounts in the Fund under paragraph (4). 

17 ‘‘(2) TRANSFERS TO FUND.—The Secretary of 

18 the Treasury shall deposit in the Fund amounts 

19 equivalent to the proceeds received by the Adminis20 trator as a result of the conduct of auctions of allow21 ances under section 707. 

22 ‘‘(3) EXPENDITURES FROM FUND.— 

23 ‘‘(A) IN GENERAL.—Subject to subpara24 graph (B), the Administrator shall use amounts 


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1 in the Fund to carry out the programs de2 scribed in this section. 

3 ‘‘(B) ADMINISTRATIVE EXPENSES.—Of 

4 amounts in the Fund, there shall be made avail5 able to pay the administrative expenses nec6 essary to carry out this title, as adjusted for 

7 changes beginning on January 1, 2007, in ac8 cordance with the Consumer Price Index for 

9 All-Urban Consumers published by the Depart10 ment of Labor— 

11 ‘‘(i) $90,000,000 for each fiscal year, 

12 to the Administrator; and 

13 ‘‘(ii) $30,000,000 for each fiscal year, 

14 to the Secretary of Agriculture. 

15 ‘‘(4) INVESTMENT OF AMOUNTS.— 

16 ‘‘(A) IN GENERAL.—The Secretary of 

17 Treasury shall invest such portion of the Fund 

18 as is not, in the judgment of the Administrator, 

19 required to meet current withdrawals. 

20 ‘‘(B) INTEREST-BEARING OBLIGATIONS.— 

21 Investments may be made only in interest-bear22 ing obligations of the United States. 

23 ‘‘(C) ACQUISITION OF OBLIGATIONS.—For 

24 the purpose of investments under paragraph 

25 (1), obligations may be acquired— 


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1 ‘‘(i) on original issue at the issue 

2 price; or 

3 ‘‘(ii) by purchase of outstanding obli4 gations at the market price. 

5 ‘‘(D) SALE OF OBLIGATIONS.—Any obliga6 tion acquired by the Fund may be sold by the 

7 Administrator at the market price. 

8 ‘‘(E) RETURN OF PROCEEDS TO FUND.— 

9 The interest on, and the proceeds from the sale 

10 or redemption of, any obligations held in the 

11 Fund shall be credited to, and form a part of, 

12 the Fund. 

13 ‘‘(5) REGULATIONS.—Not later than 2 years 

14 after the date of enactment of this title, the Admin15 istrator, in consultation with the Secretary of En16 ergy and the Secretary of Agriculture, shall promul17 gate such regulations as are necessary to administer 

18 the Fund in accordance with this section. 

19 ‘‘(b) USES OF FUND.— 

20 ‘‘(1) NO FURTHER APPROPRIATION.—The Ad21 ministrator shall distribute amounts in the Fund for 

22 use in accordance with this section, without further 

23 appropriation. 

24 ‘‘(2) REGULATIONS.— 


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

2 after the date of enactment of this title, the Ad3 ministrator, in consultation with the Secretary 

4 of Energy and the Secretary of Agriculture, 

5 shall promulgate regulations establishing an in6 novative low- and zero-emitting carbon tech7 nologies program, a clean coal technologies pro8 gram, a research and analysis program, and an 

9 energy efficiency technology program that in10 clude— 

11 ‘‘(i) the funding mechanisms that will 

12 be available to support the development 

13 and deployment of the technologies ad14 dressed by each program, including low-in15 terest loans, loan guarantees, grants, and 

16 financial awards; and 

17 ‘‘(ii) the criteria for the methods by 

18 which proposals will be funded to develop 

19 and deploy the technologies. 

20 ‘‘(B) REVISION OF CRITERIA.—Not later 

21 than January 1, 2014, and every 3 years there22 after, the Administrator shall review and, if ap23 propriate, revise, based on technological ad24 vances, the criteria referred to in subparagraph 

25 (A)(ii). 


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1 ‘‘(C) ADAPTATION ASSISTANCE FOR WORK2 ERS AND COMMUNITIES.—Not later than 3 

3 years after the date of enactment of this title, 

4 the Administrator, in consultation with the Sec5 retary of Energy, shall promulgate regulations 

6 governing the distribution of funds pursuant to 

7 subsection (g). 

8 ‘‘(3) PROGRESS REPORTS.—Not later than Jan9 uary 1, 2015, and every 5 years thereafter, the Ad10 ministrator shall prepare and submit to the Presi11 dent and Congress a report containing an evaluation 

12 of the effectiveness of the distribution of funds 

13 under this section. 

14 ‘‘(c) INNOVATIVE LOW- AND ZERO-EMITTING CAR15 BON ELECTRICITY GENERATION TECHNOLOGIES PRO16 GRAM.— 

17 ‘‘(1) IN GENERAL.—For each calendar year, of 

18 amounts remaining in the Fund after making the 

19 expenditures described in subsection (a)(3)(B), the 

20 Administrator shall use not more than 35 percent to 

21 support the development and deployment of low- and 

22 zero-emitting carbon electricity generation tech23 nologies. 

24 ‘‘(2) REGULATIONS.—The regulations estab25 lishing the innovative low- and zero-emitting carbon 


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1 electricity generation technologies program referred 

2 to in subsection (b)(2)(A) shall establish the areas of 

3 technology development that will qualify for funding 

4 under that program, including technologies for the 

5 generation of electricity from renewable energy 

6 sources. 

7 ‘‘(d) CLEAN COAL TECHNOLOGIES PROGRAM.— 

8 ‘‘(1) IN GENERAL.—For each calendar year, of 

9 amounts remaining in the Fund after making the 

10 expenditures described in subsection (a)(3)(B), the 

11 Administrator shall use not more than 20 percent to 

12 support the development and deployment of clean 

13 coal technologies. 

14 ‘‘(2) REGULATIONS.—The criteria and stand15 ards established pursuant to section 705(d)(2) to de16 fine the term ‘clean coal technology’ shall establish 

17 criteria for use of a technology in the clean coal 

18 technologies program under subsection (b)(2)(A). 

19 ‘‘(e) ENERGY EFFICIENCY TECHNOLOGY PRO20 GRAM.— 

21 ‘‘(1) IN GENERAL.—For each calendar year, of 

22 amounts remaining in the Fund after making the 

23 expenditures described in subsection (a)(3)(B), the 

24 Administrator shall use not more than 15 percent to 

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1 nologies for increasing the efficiency of energy end 

2 use in buildings and industry. 

3 ‘‘(2) REGULATIONS.—The regulations estab4 lishing the energy efficiency program referred to in 

5 subsection (b)(2)(A) shall establish the areas of 

6 technology development that will qualify for funding 

7 under the energy efficiency program. 

8 ‘‘(f) FEDERAL FUNDING OF RESEARCH INTO AND

9 DEVELOPMENT OF ENERGY AND EFFICIENCY TECH10 NOLOGIES, CARBON LIFECYCLE ANALYSIS, AND AGRICUL11 TURAL PRACTICES.—For each calendar year, the Admin12 istrator shall use not more than 10 percent of the amounts 

13 in the Fund to support research into and development 

14 of— 

15 ‘‘(1) energy and efficiency technologies; 

16 ‘‘(2) carbon lifecycle analyses of energy genera17 tion technologies and practices; and 

18 ‘‘(3) agricultural practices that sequester or re19 duce atmospheric greenhouse gases. 

20 ‘‘(g) ADAPTATION ASSISTANCE FOR WORKERS AND

21 COMMUNITIES NEGATIVELY AFFECTED BY CLIMATE

22 CHANGE AND GREENHOUSE GAS REGULATION.—For 

23 each calendar year, of amounts remaining in the Fund 

24 after making the expenditures described in subsection 

25 (a)(3)(B), the Administrator shall use at least 10 percent 


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1 to provide adaptation assistance for workers and commu2 nities— 

3 ‘‘(1) to address local or regional impacts of cli4 mate change and the impacts, if any, from green5 house gas regulation, including by providing assist6 ance to displaced workers and disproportionately af7 fected communities; and 

8 ‘‘(2) to mitigate impacts of climate change and 

9 the impacts, if any, from greenhouse gas regulation 

10 on low-income energy consumers. 

11 ‘‘(h) FISH AND WILDLIFE HABITAT.— 

12 ‘‘(1) IN GENERAL.—For each calendar year, of 

13 amounts remaining in the Fund after making the 

14 expenditures described in subsection (a)(3)(B), the 

15 Administrator shall use at least 10 percent to miti16 gate the impacts of climate change on fish and wild17 life habitat in accordance with this subsection. 

18 ‘‘(2) WILDLIFE RESTORATION FUND.— 

19 ‘‘(A) IN GENERAL.—For each calendar 

20 year, the Administrator shall transfer not less 

21 than 70 percent of the amounts made available 

22 under paragraph (1) to the Federal aid to wild23 life restoration fund established under section 

24 3(a)(1) of the Pittman-Robertson Wildlife Res25 toration Act (16 U.S.C. 669b(a)(1))— 


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1 ‘‘(i) to carry out climate change im2 pact mitigation actions pursuant to com3 prehensive wildlife conservation strategies; 

4 and 

5 ‘‘(ii) to provide relevant information, 

6 training, monitoring, and other assistance 

7 to develop climate change impact mitiga8 tion and adaptation plans and integrate 

9 the plans into State comprehensive wildlife 

10 conservation strategies. 

11 ‘‘(B) AVAILABILITY.—Amounts transferred 

12 to the Federal aid to wildlife restoration fund 

13 under this paragraph shall— 

14 ‘‘(i) be available, without further ap15 propriation, for obligation and expenditure; 

16 and 

17 ‘‘(ii) remain available until expended. 

18 ‘‘(3) PROTECTION OF NATURAL RESOURCES.— 

19 ‘‘(A) IN GENERAL.—For each calendar 

20 year, the Administrator, in consultation with 

21 the Secretary of Agriculture, the Secretary of 

22 Commerce, the Chief of Engineers, and State 

23 and national wildlife conservation organizations, 

24 shall transfer not more than 30 percent of the 

25 funds made available under paragraph (1) to 


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1 the Secretary of the Interior for use in carrying 

2 out Federal and State programs and projects— 

3 ‘‘(i) to protect natural communities 

4 that are most vulnerable to climate change; 

5 ‘‘(ii) to restore and protect natural re6 sources that directly guard against dam7 ages from climate change events; and 

8 ‘‘(iii) to restore and protect ecosystem 

9 services that are most vulnerable to climate 

10 change. 

11 ‘‘(B) ADMINISTRATION.—Amounts trans12 ferred to the Secretary of the Interior under 

13 this paragraph shall— 

14 ‘‘(i) be available, without further ap15 propriation, for obligation and expenditure; 

16 ‘‘(ii) remain available until expended; 

17 ‘‘(iii)(I) be obligated not later than 2 

18 years after the date of transfer; or 

19 ‘‘(II) if the amounts are not obligated 

20 in accordance with subclause (I), be trans21 ferred to the Federal aid to wildlife res22 toration fund for use in accordance with 

23 paragraph (2); and 

24 ‘‘(iv) supplement, and not supplant, 

25 the amount of Federal, State, and local 


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1 funds otherwise expended to carry out pro2 grams and projects described in subpara3 graph (A). 

4 ‘‘(C) PROGRAMS AND PROJECTS.—Pro5 grams and projects for which funds may be 

6 used under this paragraph include— 

7 ‘‘(i) Federal programs and projects— 

8 ‘‘(I) to identify Federal land and 

9 water at greatest risk of being dam10 aged or depleted by climate change; 

11 ‘‘(II) to monitor Federal land 

12 and water to allow for early detection 

13 of impacts; 

14 ‘‘(III) to develop adaptation 

15 strategies to minimize the damage; 

16 and 

17 ‘‘(IV) to restore and protect Fed18 eral land and water at the greatest 

19 risk of being damaged or depleted by 

20 climate change; 

21 ‘‘(ii) Federal programs and projects to 

22 identify climate change risks and develop 

23 adaptation strategies for natural grassland, 

24 wetlands, migratory corridors, and other 


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1 habitats vulnerable to climate change on 

2 private land enrolled in— 

3 ‘‘(I) the wetlands reserve pro4 gram established under subchapter C 

5 of chapter 1 of subtitle D of title XII 

6 of the Food Security Act of 1985 (16 

7 U.S.C. 3837 et seq.); 

8 ‘‘(II) the grassland reserve pro9 gram established under subchapter C 

10 of chapter 2 of subtitle D of title XII 

11 of that Act (16 U.S.C. 3838n et seq.); 

12 and 

13 ‘‘(III) the wildlife habitat incen14 tive program established under section 

15 1240N of that Act (16 U.S.C. 

16 3839bb–1); 

17 ‘‘(iii) programs and projects under the 

18 North American Wetlands Conservation 

19 Act (16 U.S.C. 4401 et seq.), the North 

20 American Bird Conservation Initiative, and 

21 the Neotropical Migratory Bird Conserva22 tion Act (16 U.S.C. 6101 et seq.) to pro23 tect habitat for migratory birds that are 

24 vulnerable to climate change impacts; 

25 ‘‘(iv) programs and projects— 


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1 ‘‘(I) to identify coastal and ma2 rine resources (such as coastal wet3 lands, coral reefs, submerged aquatic 

4 vegetation, shellfish beds, and other 

5 coastal or marine ecosystems) at the 

6 greatest risk of being damaged by cli7 mate change; 

8 ‘‘(II) to monitor those resources 

9 to allow for early detection of impacts; 

10 ‘‘(III) to develop adaptation 

11 strategies; 

12 ‘‘(IV) to protect and restore 

13 those resources; and 

14 ‘‘(V) to integrate climate change 

15 adaptation requirements into State 

16 plans developed under the coastal 

17 zone management program estab18 lished under the Coastal Zone Man19 agement Act of 1972 (16 U.S.C. 1451 

20 et seq.), the national estuary program 

21 established under section 320 of the 

22 Federal Water Pollution Control Act 

23 (33 U.S.C. 1330), the Coastal and 

24 Estuarine Land Conservation Pro25 gram established under the fourth 


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1 proviso of the matter under the head2 ing ‘PROCUREMENT, ACQUISITION, 

3 AND CONSTRUCTION (INCLUDING

4 TRANSFERS OF FUNDS)’ of title II of 

5 the Departments of Commerce, Jus6 tice, and State, the Judiciary, and Re7 lated Agencies Appropriations Act, 

8 2002 (16 U.S.C. 1456d), or other 

9 comparable State programs; 

10 ‘‘(v) programs and projects to con11 serve habitat for endangered species and 

12 species of conservation concern that are 

13 vulnerable to the impact of climate change; 

14 ‘‘(vi) programs and projects under the 

15 Forest Legacy Program established under 

16 section 7 of the Cooperative Forestry As17 sistance Act (16 U.S.C. 2103c), to support 

18 State efforts to protect environmentally 

19 sensitive forest land through conservation 

20 easements to provide refuges for wildlife; 

21 ‘‘(vii) other Federal or State pro22 grams and projects identified by the heads 

23 of agencies described in subparagraph (A) 

24 as high priorities— 


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1 ‘‘(I) to protect natural commu2 nities that are most vulnerable to cli3 mate change; 

4 ‘‘(II) to restore and protect nat5 ural resources that directly guard 

6 against damages from climate change 

7 events; and 

8 ‘‘(III) to restore and protect eco9 system services that are most vulner10 able to climate change; 

11 ‘‘(viii) to address climate change in 

12 Federal land use planning and plan imple13 mentation and to integrate climate change 

14 adaptation strategies into— 

15 ‘‘(I) comprehensive conservation 

16 plans prepared under section 4(e) of 

17 the National Wildlife Refuge System 

18 Administration Act of 1966 (16 

19 U.S.C. 668dd(e)); 

20 ‘‘(II) general management plans 

21 for units of the National Park Sys22 tem; 

23 ‘‘(III) resource management 

24 plans of the Bureau of Land Manage25 ment; and 


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1 ‘‘(IV) land and resource manage2 ment plans under the Forest and 

3 Rangeland Renewable Resources 

4 Planning Act of 1974 (16 U.S.C. 

5 1600 et seq.) and the National Forest 

6 Management Act of 1976 (16 U.S.C. 

7 1600 et seq.); and 

8 ‘‘(ix) projects to promote sharing of 

9 information on climate change wildlife im10 pacts and mitigation strategies across 

11 agencies, including funding efforts to 

12 strengthen and restore habitat that im13 proves the ability of fish and wildlife to 

14 adapt successfully to climate change 

15 through the Wildlife Conservation and Res16 toration Account established by section 

17 3(a)(2) of the Pittman-Robertson Wildlife 

18 Restoration Act (16 U.S.C. 669b(a)(2)).’’. 

19 SEC. 4. NEW SOURCE REVIEW PROGRAM. 

20 Section 165 of the Clean Air Act (42 U.S.C. 7475) 

21 is amended by adding at the end the following: 

22 ‘‘(f) REVISIONS TO NEW SOURCE REVIEW PRO23 GRAM.— 

24 ‘‘(1) DEFINITIONS.—In this subsection: 


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1 ‘‘(A) AFFECTED UNIT.—The term ‘af2 fected unit’ has the meaning given the term in 

3 section 701. 

4 ‘‘(B) NEW SOURCE REVIEW PROGRAM.— 

5 The term ‘new source review program’ means 

6 the program to carry out this part and part D. 

7 ‘‘(2) PERFORMANCE STANDARDS.— 

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

9 subparagraph (B), beginning January 1, 2020, 

10 and on each January 1 thereafter, each affected 

11 unit that has been in operation 40 or more 

12 years as of that January 1, and that operates 

13 for more than 500 hours per calendar year, 

14 shall meet performance standards of— 

15 ‘‘(i) 2 lbs/MWh for sulfur dioxide; and 

16 ‘‘(ii) 1 lbs/MWh for nitrogen oxides. 

17 ‘‘(B) EXCEPTION.— 

18 ‘‘(i) IN GENERAL.—Notwithstanding 

19 subparagraph (A), an affected unit that, as 

20 of January 1, 2020, is required to meet a 

21 more stringent performance standard than 

22 the applicable standard under subpara23 graph (A) shall continue to meet the more 

24 stringent standard. 


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1 ‘‘(ii) MODIFICATION OF AFFECTED

2 UNITS.—The requirements of this section 

3 shall not affect in any way any require4 ment under section 111(a)(4), this part, or 

5 part D governing modifications of major 

6 stationary sources. 

7 ‘‘(3) NO EFFECT ON OTHER REQUIREMENTS

8 AND RETENTION OF STATE AUTHORITY.—Nothing in 

9 this subsection affects— 

10 ‘‘(A) any State authority under section 

11 116; or 

12 ‘‘(B) the obligation of any State or local 

13 government or any major emitting facility to 

14 comply with the requirements of this section.’’. 

15 SEC. 5. REVISIONS TO SULFUR DIOXIDE ALLOWANCE PRO16 GRAM. 

17 (a) IN GENERAL.—Title IV of the Clean Air Act (re18 lating to acid deposition control) (42 U.S.C. 7651 et seq.) 

19 is amended by adding at the end the following: 

20 ‘‘SEC. 417. REVISIONS TO SULFUR DIOXIDE ALLOWANCE 

21 PROGRAM. 

22 ‘‘(a) DEFINITIONS.—In this section, the terms ‘af23 fected unit’ and ‘new unit’ have the meanings given the 

24 terms in section 701. 


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1 ‘‘(b) REGULATIONS.—Not later than January 1, 

2 2008, the Administrator shall promulgate such revisions 

3 to the regulations to implement this title as the Adminis4 trator determines to be necessary to implement section 

5 702(a). 

6 ‘‘(c) NEW UNIT RESERVE.— 

7 ‘‘(1) ESTABLISHMENT.—Subject to the annual 

8 tonnage limitation for emissions of sulfur dioxide 

9 from affected units specified in section 702(a), the 

10 Administrator shall establish by regulation a reserve 

11 of allowances to be set aside for use by new units. 

12 ‘‘(2) DETERMINATION OF QUANTITY.—The Ad13 ministrator, in consultation with the Secretary of 

14 Energy, shall determine, based on projections of 

15 electricity output for new units— 

16 ‘‘(A) not later than June 30, 2008, the 

17 quantity of allowances required to be held in re18 serve for new units for each of calendar years 

19 2012 through 2014; and 

20 ‘‘(B) not later than June 30 of each fifth 

21 calendar year thereafter, the quantity of allow22 ances required to be held in reserve for new 

23 units for the following 5-calendar year period. 

24 ‘‘(3) ALLOCATION.— 


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1 ‘‘(A) REGULATIONS.—The Administrator 

2 shall promulgate regulations to establish a 

3 methodology for allocating allowances to new 

4 units. 

5 ‘‘(B) NO JUDICIAL REVIEW.—An allocation 

6 of allowances by the Administrator under this 

7 subsection shall not be subject to judicial re8 view. 

9 ‘‘(d) EXISTING UNITS.— 

10 ‘‘(1) ALLOCATION.— 

11 ‘‘(A) REGULATIONS.—Subject to the an12 nual tonnage limitation for emissions of sulfur 

13 dioxide from affected units specified in section 

14 702(a), and subject to the reserve of allowances 

15 for new units under subsection (c), the Admin16 istrator shall promulgate regulations to govern 

17 the allocation of allowances to affected units 

18 that are not new units. 

19 ‘‘(B) REQUIRED ELEMENTS.—The regula20 tions shall provide for— 

21 ‘‘(i) the allocation of allowances on a 

22 fair and equitable basis between affected 

23 units that received allowances under sec24 tion 405 and affected units that are not 

25 new units and that did not receive allowVerDate Aug 31 2005 18:53 Apr 22, 2007 Jkt 059200 PO 00000 Frm 00079 Fmt 6652 Sfmt 6201 E:\BILLS\S1177.IS S1177

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1 ances under that section, using for both 

2 categories of units the same or similar allo3 cation methodology as was used under sec4 tion 405; and 

5 ‘‘(ii) the pro-rata distribution of allow6 ances to all units described in clause (i), 

7 subject to the annual tonnage limitation 

8 for emissions of sulfur dioxide from af9 fected units specified in section 702(a). 

10 ‘‘(2) TIMING OF ALLOCATIONS.—The Adminis11 trator shall allocate allowances to affected units— 

12 ‘‘(A) not later than December 31, 2007, 

13 for calendar years 2010 and 2011; and 

14 ‘‘(B) not later than December 31 of cal15 endar year 2008 and each calendar year there16 after, for the fourth calendar year that begins 

17 after that December 31. 

18 ‘‘(3) NO JUDICIAL REVIEW.—An allocation of 

19 allowances by the Administrator under this sub20 section shall not be subject to judicial review.’’. 

21 (b) DEFINITION OF ALLOWANCE.—Section 402 of 

22 the Clean Air Act (relating to acid deposition control) (42 

23 U.S.C. 7651a) is amended by striking paragraph (3) and 

24 inserting the following: 


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1 ‘‘(3) ALLOWANCE.—The term ‘allowance’ 

2 means an authorization, allocated by the Adminis3 trator to an affected unit under this title, to emit, 

4 during or after a specified calendar year, a quantity 

5 of sulfur dioxide determined by the Administrator 

6 and specified in the regulations promulgated under 

7 section 417(b).’’. 

8 (c) EXCESS EMISSIONS.—Section 411 of the Clean 

9 Air Act (relating to acid deposition control) (42 U.S.C. 

10 7651j) is amended by striking subsections (a) and (b) and 

11 inserting the following: 

12 ‘‘(a) IN GENERAL.—The owner or operator of a new 

13 unit or an affected unit that emits sulfur dioxide in excess 

14 of the sulfur dioxide allowances that the owner or operator 

15 holds for use for the new unit or affected unit for the cal16 endar year shall— 

17 ‘‘(1) pay an excess emissions penalty deter18 mined under subsection (b); and 

19 ‘‘(2) offset the excess emissions by at least an 

20 equal quantity in the following calendar year or such 

21 other period as the Administrator shall prescribe. 

22 ‘‘(b) DETERMINATION OF EXCESS EMISSIONS PEN23 ALTY.— 


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1 ‘‘(1) IN GENERAL.—The excess emissions pen2 alty for sulfur dioxide shall be equal to the product 

3 obtained by multiplying— 

4 ‘‘(A) the quantity of sulfur dioxide emitted 

5 in excess of the total quantity of sulfur dioxide 

6 allowances held; and 

7 ‘‘(B) 2 times the average price of a sulfur 

8 dioxide allowance for the calendar year in which 

9 the excess emissions occurred, as determined by 

10 the Administrator. 

11 ‘‘(2) TREATMENT.—An excess emissions pen12 alty under paragraph (1)— 

13 ‘‘(A) shall be due and payable without de14 mand to the Administrator, in accordance with 

15 applicable regulations promulgated by the Ad16 ministrator, by not later than 18 months after 

17 the date of enactment of the Clean Air Plan18 ning Act of 2007; and 

19 ‘‘(B) shall not diminish the liability of the 

20 owner or operator of the affected unit with re21 spect to any fine, penalty, or assessment appli22 cable to the affected unit for the same violation 

23 under any other provision of this Act.’’. 

24 (d) TECHNICAL AMENDMENTS.— 


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1 (1) Title IV of the Clean Air Act (relating to 

2 noise pollution) (42 U.S.C. 7641 et seq.)— 

3 (A) is amended by redesignating sections 

4 401 through 403 as sections 801 through 803, 

5 respectively; and 

6 (B) is redesignated as title VIII and moved 

7 to appear at the end of that Act. 

8 (2) The table of contents for title IV of the 

9 Clean Air Act (relating to acid deposition control) 

10 (42 U.S.C. prec. 7651) is amended by adding at the 

11 end the following: 

‘‘Sec. 417. Revisions to sulfur dioxide allowance program.’’. 

12 SEC. 6. ENVIRONMENTAL PROTECTION AGENCY PROGRAM 

13 TO REDUCE CARBON DIOXIDE FROM NEW 

14 COAL-FIRED ELECTRIC GENERATING UNITS. 

15 Section 111 of the Clean Air Act (42 U.S.C. 7411) 

16 is amended by adding at the end the following: 

17 ‘‘(k) STANDARDS OF PERFORMANCE FOR NEW ELEC18 TRIC GENERATING UNITS.— 

19 ‘‘(1) STANDARD OF PERFORMANCE.— 

20 ‘‘(A) IN GENERAL.—Each covered unit 

21 that commences operation on or after January 

22 1, 2015, shall meet the following standards of 

23 performance: 

24 ‘‘(i) For each of calendar years 2015 

25 through 2025, an emission limitation of 


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1 1,100 pounds of carbon dioxide per mega2 watt-hour or less. 

3 ‘‘(ii) For calendar year 2025 and each 

4 calendar year thereafter, an emission limi5 tation of 285 pounds of carbon dioxide per 

6 megawatt-hour or less. 

7 ‘‘(B) REVIEW AND REVISION.— 

8 ‘‘(i) IN GENERAL.—Not later than 

9 January 1, 2015, and every 5 years there10 after, the Administrator shall complete a 

11 review of the standard of performance 

12 under subparagraph (A) (or a modified 

13 standard, if applicable) to determine 

14 whether the standard requires revision, 

15 based on the best available technological 

16 system of continuous emission reduction on 

17 the date on which the review is conducted. 

18 ‘‘(ii) PUBLICATION.—The Adminis19 trator shall publish each determination 

20 under clause (i) not later than the deadline 

21 for the determination under that clause. 

22 ‘‘(iii) TREATMENT.—A determination 

23 of the Administrator under clause (i) shall 

24 be considered to be a final agency action 

25 for purposes of section 307(b)(1). 


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1 ‘‘(2) TREATMENT OF CERTAIN CARBON DIOX2 IDE.—Carbon dioxide that is injected into a geologi3 cal formation in a manner that prevents any release 

4 of the carbon dioxide into the atmosphere shall not 

5 be considered to be a carbon dioxide emission from 

6 an electric generating unit for purposes of meeting 

7 an applicable standard under paragraph (1).’’. 

8 SEC. 7. RELATIONSHIP TO OTHER LAW. 

9 (a) REGULATION OF HAZARDOUS AIR POLLUT10 ANTS.—Section 112(n)(1) of the Clean Air Act (42 U.S.C. 

11 7412(n)(1)) is amended by striking subparagraph (A) and 

12 inserting the following: 

13 ‘‘(A) REGULATIONS.— 

14 ‘‘(i) IN GENERAL.—Not later than 18 

15 months after the date of enactment of the 

16 Clean Air Planning Act of 2007, the Ad17 ministrator shall promulgate regulations 

18 under this section limiting the emission 

19 from electric utility steam generating units 

20 of hazardous air pollutants, other than 

21 mercury, as the Administrator determines 

22 to be appropriate and necessary in accord23 ance with the standards under this section, 

24 including subsections (b)(2) and (f). 


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1 ‘‘(ii) REQUIREMENTS.—The regula2 tions under clause (i) shall— 

3 ‘‘(I) require compliance with ap4 plicable standards as expeditiously as 

5 practicable, but not later than 3 years 

6 after the effective date of the regula7 tions; and 

8 ‘‘(II) be in accordance with other 

9 applicable requirements under this 

10 section. 

11 ‘‘(iii) EFFECTIVE DATE.—The regula12 tions under clause (i) shall be effective on 

13 the date of promulgation of the regula14 tions.’’. 

15 (b) NO EFFECT ON OTHER FEDERAL AND STATE

16 REQUIREMENTS.—Except as otherwise specifically pro17 vided in this Act, nothing in this Act or an amendment 

18 made by this Act— 

19 (1) affects any permitting, monitoring, or en20 forcement obligation of the Administrator of the En21 vironmental Protection Agency under the Clean Air 

22 Act (42 U.S.C. 7401 et seq.) or any remedy pro23 vided under that Act; 


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1 (2) affects any requirement applicable to, or li2 ability of, an electric generating facility under that 

3 Act; 

4 (3) requires a change in, affects, or limits any 

5 State law that regulates electric utility rates or 

6 charges, including prudence review under State law; 

7 or 

8 (4) precludes a State or political subdivision of 

9 a State from adopting and enforcing any require10 ment for the control or abatement of air pollution, 

11 except that a State or political subdivision may not 

12 adopt or enforce any emission standard or limitation 

13 that is less stringent than the requirements imposed 

14 under that Act. 

Æ 


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