```

[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 1201 Introduced in Senate (IS)]

110th CONGRESS
  1st Session
                                S. 1201

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

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             April 24, 2007

 Mr. Sanders (for himself, Mr. Lieberman, Mr. Leahy, and Mr. Feingold) 
introduced the following bill; which was read twice and referred to the 
               Committee on Environment and Public Works

_______________________________________________________________________

                                 A BILL

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

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Clean Power Act of 2007''.

SEC. 2. ELECTRIC ENERGY GENERATION EMISSION REDUCTIONS.

    (a) In General.--The Clean Air Act (42 U.S.C. 7401 et seq.) is 
amended by adding at the end the following:

      ``TITLE VII--ELECTRIC ENERGY GENERATION EMISSION REDUCTIONS

``Sec. 701. Findings.
``Sec. 702. Purposes.
``Sec. 703. Definitions.
``Sec. 704. Emission limitations.
``Sec. 705. Emission allowances.
``Sec. 706. Permitting and trading of emission allowances.
``Sec. 707. Emission allowance allocation.
``Sec. 708. Mercury emission limitations.
``Sec. 709. Other hazardous air pollutants.
``Sec. 710. Emission standards for affected units.
``Sec. 711. Low-carbon generation requirement.
``Sec. 712. Geological disposal of global warming pollutants.
``Sec. 713. Energy efficiency performance standard.
``Sec. 714. Renewable portfolio standard.
``Sec. 715. Standards to account for biological sequestration of 
                            carbon.
``Sec. 716. Effect of failure to promulgate regulations.
``Sec. 717. Prohibitions.
``Sec. 718. Modernization of electric generation facilities.
``Sec. 719. Condition for treatment of electric generation facilities 
                            after 2020.
``Sec. 720. Paramount interest waiver.
``Sec. 721. Relationship to other law.

``SEC. 701. FINDINGS.

    ``Congress finds that--
            ``(1) public health and the environment continue to suffer 
        as a result of pollution emitted by powerplants across the 
        United States, despite the success of Public Law 101-549 
        (commonly known as the `Clean Air Act Amendments of 1990') (42 
        U.S.C. 7401 et seq.) in reducing emissions;
            ``(2) according to the most reliable scientific knowledge, 
        acid rain precursors must be significantly reduced for the 
        ecosystems of the Northeast and Southeast to recover from the 
        ecological harm caused by acid deposition;
            ``(3) because lakes and sediments across the United States 
        are being contaminated by mercury emitted by powerplants, there 
        is an increasing risk of mercury poisoning of aquatic habitats 
        and fish-consuming human populations;
            ``(4) electricity generation accounts for approximately 40 
        percent of the total emissions in the United States of carbon 
        dioxide, a major global warming pollutant causing global 
        warming;
            ``(5) the cumulative impact of powerplant emissions on 
        public and environmental health must be addressed swiftly by 
        reducing those harmful emissions to levels that are less 
        threatening;
            ``(6) 1,803,000,000 metric tons of carbon dioxide 
        equivalent were emitted during 1990;
            ``(7)(A) the atmosphere is a public resource; and
            ``(B) emission allowances, representing permission to use 
        that resource for disposal of air pollution from electricity 
        generation, should be allocated to promote public purposes, 
        including--
                    ``(i) protecting electricity consumers from adverse 
                economic impacts;
                    ``(ii) providing transition assistance to adversely 
                affected employees, communities, and industries; and
                    ``(iii) promoting clean energy resources and energy 
                efficiency;
            ``(8) an array of technological options exist for use in 
        reducing global warming pollution emissions, and significant 
        reductions can be attained using a portfolio of options that 
        will not adversely impact the economy;
            ``(9) the ingenuity of the people of the United States will 
        allow the United States to become a leader in solving global 
        warming; and
            ``(10) it should be a goal of the United States to achieve 
        a reduction in global warming pollution emissions in the United 
        States--
                    ``(A) to ensure that the average global temperature 
                does not increase by more than 3.6 degrees Fahrenheit 
                (2 degrees Celsius); and
                    ``(B) to ensure the achievement of an average 
                global atmospheric concentration of global warming 
                pollutants that does not exceed 450 parts per million 
                in carbon dioxide equivalent.

``SEC. 702. PURPOSES.

    ``The purposes of this title are--
            ``(1) to alleviate the environmental and public health 
        damage caused by emissions of sulfur dioxide, nitrogen oxides, 
        global warming pollutants, and mercury resulting from the 
        combustion of fossil fuels in the generation of electric and 
        thermal energy;
            ``(2) to reduce the annual national emissions from electric 
        generation facilities to not more than--
                    ``(A) for calendar years 2010 through 2012--
                            ``(i) 2,250,000 tons of sulfur dioxide; and
                            ``(ii) 1,510,000 tons of nitrogen oxides; 
                        and
                    ``(B) for calendar year 2013 and each calendar year 
                thereafter--
                            ``(i) 1,300,000 tons of sulfur dioxide; and
                            ``(ii) 900,000 tons of nitrogen oxides;
            ``(3)(A) to reduce, by December 31, 2012, the annual 
        national emissions of mercury from electric generation 
        facilities to not more than 5 tons; and
            ``(B) to the maximum extent practicable, to achieve a 
        facility-specific reduction in emissions of mercury of more 
        than 90 percent;
            ``(4) beginning in calendar year 2010, to reduce each 
        calendar year the annual national emissions of global warming 
        pollutants from electric generation facilities to achieve a 
        reduction in emissions of global warming pollutants equal to--
                    ``(A) by December 31, 2011, not more than 
                2,300,000,000 metric tons of carbon dioxide equivalent;
                    ``(B) by December 31, 2015, not more than 
                2,100,000,000 metric tons of carbon dioxide equivalent;
                    ``(C) by December 31, 2020, not more than 
                1,803,000,000 metric tons of carbon dioxide equivalent; 
                and
                    ``(D) by December 31, 2025, not more than 
                1,500,000,000 metric tons of carbon dioxide equivalent;
            ``(5) to effectuate the reductions described in paragraphs 
        (2) through (4) by--
                    ``(A) requiring electric generation facilities to 
                comply with specified emission limitations by specified 
                deadlines; and
                    ``(B) allowing electric generation facilities to 
                meet the emission limitations (other than the emission 
                limitation for mercury) through an alternative method 
                of compliance consisting of an emission allowance and 
                transfer system;
            ``(6) to reduce, by December 31, 2050, emissions from power 
        plants of global warming pollutants that cause global warming 
        to facilitate the achievement of an economy-wide reduction, 
        consistent with the goal of stabilization of worldwide 
        atmospheric concentrations of global warming pollutants at 450 
        parts per million carbon dioxide equivalent; and
            ``(7) to encourage energy conservation, use of renewable 
        and clean alternative technologies, and pollution prevention as 
        long-range strategies, consistent with this title, for reducing 
        air pollution and other adverse impacts of energy generation 
        and use.

``SEC. 703. DEFINITIONS.

    ``In this title:
            ``(1) Academy.--The term `Academy' means the National 
        Academy of Sciences.
            ``(2) Carbon dioxide equivalent.--The term `carbon dioxide 
        equivalent' means, for each global warming pollutant, the 
        quantity of the global warming pollutant that makes the same 
        contribution to global warming as 1 metric ton of carbon 
        dioxide, as determined by the Administrator, taking into 
        consideration the report described in section 705(d)(1).
            ``(3) Covered pollutant.--The term `covered pollutant' 
        means--
                    ``(A) sulfur dioxide;
                    ``(B) any nitrogen oxide;
                    ``(C) mercury; and
                    ``(D) any global warming pollutant.
            ``(4) Electric generation facility.--The term `electric 
        generation facility' means an electric or thermal electricity 
        generating unit, a combination of such units, or a combination 
        of 1 or more such units and 1 or more combustion devices, 
        that--
                    ``(A) has a nameplate capacity of 25 megawatts or 
                more (or the equivalent in thermal energy generation, 
                determined in accordance with a methodology developed 
                by the Administrator);
                    ``(B) generates electric energy, for sale, through 
                combustion of fossil fuel; and
                    ``(C) emits a covered pollutant into the 
                atmosphere.
            ``(5) Electricity intensive product.--The term `electricity 
        intensive product' means a product with respect to which the 
        cost of electricity consumed in the production of the product 
        represents more than 5 percent of the value of the product.
            ``(6) Emission allowance.--The term `emission allowance' 
        means a limited authorization to emit in accordance with this 
        title--
                    ``(A) 1 ton of sulfur dioxide;
                    ``(B) 1 ton of nitrogen oxides; or
                    ``(C) 1 ton of global warming pollutant.
            ``(7) Energy efficiency project.--The term `energy 
        efficiency project' means any specific action (other than 
        ownership or operation of an energy efficient building) 
        commenced after the date of enactment of this title--
                    ``(A) at a facility (other than an electric 
                generation facility), that verifiably reduces the 
                annual electricity or natural gas consumption per unit 
                output of the facility, as compared with the annual 
                electricity or natural gas consumption per unit output 
                that would be expected in the absence of an allocation 
                of emission allowances (as determined by the 
                Administrator); or
                    ``(B) by an entity that is primarily engaged in the 
                transmission and distribution of electricity, that 
                significantly improves the efficiency of that type of 
                entity, as compared with standards for efficiency 
                developed by the Administrator, in consultation with 
                the Secretary of Energy, after the date of enactment of 
                this title.
            ``(8) Energy efficient building.--The term `energy 
        efficient building' means a residential building or commercial 
        building completed after the date of enactment of this title 
        for which the projected lifetime consumption of electricity or 
        natural gas for heating, cooling, and ventilation is at least 
        30 percent less than the lifetime consumption of a typical new 
        residential building or commercial building, as determined by 
        the Administrator (in consultation with the Secretary of 
        Energy)--
                    ``(A) on a State or regional basis; and
                    ``(B) taking into consideration--
                            ``(i) applicable building codes; and
                            ``(ii) consumption levels achieved in 
                        practice by new residential buildings or 
                        commercial buildings in the absence of an 
                        allocation of emission allowances.
            ``(9) Energy efficient product.--The term `energy efficient 
        product' means a product manufactured after the date of 
        enactment of this title that has an expected lifetime 
        electricity or natural gas consumption that--
                    ``(A) is less than the average lifetime electricity 
                or natural gas consumption for that type of product; 
                and
                    ``(B) does not exceed the lesser of--
                            ``(i) the maximum energy consumption that 
                        qualifies for the applicable Energy Star label 
                        for that type of product; or
                            ``(ii) the average energy consumption of 
                        the most efficient 25 percent of that type of 
                        product manufactured in the same year.
            ``(10) Facility.--The term `facility' means any building, 
        structure, or installation that is located--
                    ``(A) on 1 or more contiguous or adjacent 
                properties under the common control of at least 1 
                person; and
                    ``(B) in the United States.
            ``(11) Global warming pollutant.--The term `global warming 
        pollutant' means--
                    ``(A) carbon dioxide;
                    ``(B) methane;
                    ``(C) nitrous oxide;
                    ``(D) hydrofluorocarbons;
                    ``(E) perfluorocarbons;
                    ``(F) sulfur hexafluoride; and
                    ``(G) any other anthropogenically-emitted gas that 
                the Administrator, after notice and comment, determines 
                to contribute to global warming.
            ``(12) Global warming pollution.--The term `global warming 
        pollution' means any combination of 1 or more global warming 
        pollutants emitted into the ambient air or atmosphere.
            ``(13) Lifetime.--The term `lifetime' means--
                    ``(A) in the case of a residential building that is 
                an energy efficient building, 30 years;
                    ``(B) in the case of a commercial building that is 
                an energy efficient building, 15 years; and
                    ``(C) in the case of an energy efficient product, a 
                period determined by the Administrator to be the 
                average life of that type of energy efficient product.
            ``(14) Mercury.--The term `mercury' includes any mercury 
        compound.
            ``(15) NAS report.--The term `NAS report' means a report 
        completed by the Academy under subsection (d)(1) or (e)(2) of 
        section 705.
            ``(16) Nonwestern region.--The term `nonwestern region' 
        means the area of the States that is not included in the 
        western region.
            ``(17) Renewable electricity generating unit.--The term 
        `renewable electricity generating unit' means a unit that--
                    ``(A) has been in operation for 10 years or less; 
                and
                    ``(B) generates electric energy by means of--
                            ``(i) wind;
                            ``(ii) biomass;
                            ``(iii) landfill gas;
                            ``(iv) a geothermal, solar thermal, or 
                        photovoltaic source; or
                            ``(v) a fuel cell operating on fuel derived 
                        from a renewable source of energy.
            ``(18) Small electric generation facility.--The term `small 
        electric generation facility' means an electric or thermal 
        electricity generating unit, or combination of units, that--
                    ``(A) has a nameplate capacity of less than 25 
                megawatts (or the equivalent in thermal energy 
                generation, determined in accordance with a methodology 
                developed by the Administrator);
                    ``(B) generates electric energy, for sale, through 
                combustion of fossil fuel; and
                    ``(C) emits a covered pollutant into the 
                atmosphere.
            ``(19) Western region.--The term `western region' means the 
        area comprising the States of Arizona, California, Colorado, 
        Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, 
        and Wyoming.

``SEC. 704. CONDITION FOR TREATMENT OF ELECTRIC GENERATION FACILITIES 
              AFTER 2020.

    ``If, by December 31, 2012, Congress does not enact, and the 
President does not sign, an Act affecting at least 85 percent of 
manmade sources of global warming pollution in the United States 
designed to reduce, on an economy-wide basis, the quantity of global 
warming pollutants emitted from those sources, the emissions 
limitations for electric generation facilities shall be successively 
decreased by at least 3 percent below the limitations required by this 
title for the preceding calendar year--
            ``(1) for each of calendar years 2026 through 2050;
            ``(2) until, as determined by the Administrator, the 
        purpose described in section 702(6) is achieved; or
            ``(3) until Congress enacts, and the President signs, such 
        an Act.

``SEC. 705. EMISSION LIMITATIONS.

    ``(a) In General.--Subject to subsections (b) through (e), the 
Administrator shall promulgate regulations to ensure that the total 
annual emissions of covered pollutants from all electric generation 
facilities located in all States does not exceed--
            ``(1) in the case of sulfur dioxide--
                    ``(A) in the western region--
                            ``(i) for calendar years 2010 through 2012, 
                        274,500 tons; and
                            ``(ii) for calendar year 2013 and each 
                        calendar year thereafter, 158,600 tons; and
                    ``(B) in the nonwestern region--
                            ``(i) for calendar years 2010 through 2012, 
                        1,975,500 tons; and
                            ``(ii) for calendar year 2013 and each 
                        calendar year thereafter, 1,141,400 tons;
            ``(2) in the case of nitrogen oxides--
                    ``(A) for calendar years 2010 through 2012, 
                1,510,000 tons; and
                    ``(B) for calendar year 2013 and each calendar year 
                thereafter, 900,000 tons;
            ``(3) in the case of global warming pollutants, beginning 
        in calendar year 2010, a quantity to be reduced each calendar 
        year to achieve a reduction in emissions of global warming 
        pollutants equal to--
                    ``(A) by December 31, 2011, not more than 
                2,300,000,000 metric tons of carbon dioxide equivalent;
                    ``(B) by December 31, 2015, not more than 
                2,100,000,000 metric tons of carbon dioxide equivalent;
                    ``(C) by December 31, 2020, not more than 
                1,803,000,000 metric tons of carbon dioxide equivalent; 
                and
                    ``(D) by December 31, 2025, not more than 
                1,500,000,000 metric tons of carbon dioxide equivalent; 
                and
            ``(4) in the case of mercury, by December 31, 2012, and 
        during each calendar year thereafter, the lower of, as 
        applicable--
                    ``(A) 5 tons; and
                    ``(B) to the maximum extent practicable, with 
                respect to an electric generation facility, a quantity 
                of mercury emissions that represents more than a 90-
                percent reduction of emissions of mercury by the 
                electric generation facility, as compared to the 
                average emissions of mercury during calendar years 2009 
                through 2011.
    ``(b) Excess Emissions Based on Unused Allowances.--The regulations 
promulgated under subsection (a) shall authorize emissions of covered 
pollutants in excess of the national emission limitations established 
under that subsection for a calendar year to the extent that the number 
of tons of the excess emissions is less than or equal to the number of 
emission allowances that are--
            ``(1) used in the calendar year; but
            ``(2) allocated for any preceding calendar year under 
        section 708.
    ``(c) Reductions.--For calendar year 2010 and each calendar year 
thereafter, the quantity of emissions specified for each covered 
pollutant in subsection (a) shall be reduced by the sum of--
            ``(1) the number of tons of the covered pollutant that were 
        emitted by small electric generation facilities in the second 
        preceding calendar year; and
            ``(2) any number of tons of reductions in emissions of the 
        covered pollutant required under section 706(h).
    ``(d) Accelerated Global Warming Pollution Emissions Limitations.--
            ``(1) Academy report on global change events.--
                    ``(A) In general.--The Administrator shall offer to 
                enter into a contract with the Academy under which the 
                Academy, not later than 2 years after the date of 
                enactment of this title, and every 3 years thereafter, 
                shall submit to Congress and the Administrator a report 
                that describes whether any event described in 
                subparagraph (B)--
                            ``(i) has occurred or is more likely than 
                        not to occur in the foreseeable future; and
                            ``(ii) in the judgment of the Academy, is 
                        the result of anthropogenic climate change.
                    ``(B) Events.--The events referred to in 
                subparagraph (A) are--
                            ``(i) the exceedance of an atmospheric 
                        concentration of global warming pollutants of 
                        450 parts per million in carbon dioxide 
                        equivalent; and
                            ``(ii) an increase of global average 
                        temperatures in excess of 3.6 degrees 
                        Fahrenheit (2 degrees Celsius) above the 
                        preindustrial average.
            ``(2) Acceleration of limitations.--If a NAS report 
        determines that an event described in paragraph (1)(B) has 
        occurred, or is more likely than not to occur in the 
        foreseeable future, not later than 2 years after the date of 
        completion of the NAS report, the Administrator, after an 
        opportunity for notice and public comment and taking into 
        consideration the new information contained in the NAS report, 
        may--
                    ``(A) adjust any global warming pollution emissions 
                limitation under this section; and
                    ``(B) promulgate such regulations as the 
                Administrator determines to be necessary--
                            ``(i) to reduce the aggregate net levels of 
                        global warming pollution emissions from the 
                        United States on an accelerated schedule; and
                            ``(ii) to minimize the effects of rapid 
                        climate change and otherwise achieve the 
                        purposes of this title.
    ``(e) Report on Achievement of Global Warming Pollution Emissions 
Limitations.--
            ``(1) Definition of technologically infeasible.--In this 
        subsection, the term `technologically infeasible', with respect 
        to compliance with a standard or requirement under this 
        subsection, means that adequate technology or infrastructure 
        does not exist, or is not reasonably anticipated to exist, 
        within a sufficient time to permit compliance with the standard 
        or requirement.
            ``(2) Technology reports.--The Administrator shall offer to 
        enter into a contract with the Academy under which the Academy, 
        not later than 2 years after the date of enactment of this 
        title and every 3 years thereafter, shall submit to Congress 
        and the Administrator a report that analyzes--
                    ``(A) the status of current global warming 
                pollution emission reduction technologies, including--
                            ``(i) technologies for capture and disposal 
                        of global warming pollutants;
                            ``(ii) efficiency improvement technologies;
                            ``(iii) zero-global-warming-pollution-
                        emitting energy technologies; and
                            ``(iv) above- and below-ground biological 
                        sequestration technologies;
                    ``(B) whether any requirement under this title 
                (including regulations promulgated pursuant to this 
                title) requires a level of emission control or 
                reduction that, based on available or expected 
                technology, will be technologically infeasible at the 
                time at which the requirement becomes effective;
                    ``(C) the projected date on which any technology 
                determined to be technologically infeasible will become 
                technologically feasible;
                    ``(D) whether any technology determined to be 
                technologically infeasible cannot reasonably be 
                expected to become technologically feasible before 
                January 1, 2050; and
                    ``(E) the costs of available alternative global 
                warming pollution emission reduction strategies that 
                could be used or pursued in lieu of any technology that 
                is determined to be technologically infeasible.
            ``(3) Conclusion.--If a NAS report concludes that a global 
        warming pollution emissions limitation required by this section 
        cannot be achieved because the limitation is technologically 
        infeasible, the Administrator shall submit to Congress a 
        notification of that conclusion.
            ``(4) Evaluation of certain purpose.--Not later than 
        December 31, 2037, the Administrator shall offer to enter into 
        a contract with the Academy under which, not later than 
        December 31, 2039, the Academy shall prepare and submit to 
        Congress and the Administrator a report on the appropriateness 
        of the purpose described in section 702(6), taking into 
        consideration--
                    ``(A) information that was not available as of the 
                date of enactment of this title; and
                    ``(B) events that have occurred since that date 
                relating to--
                            ``(i) climate change;
                            ``(ii) climate change technologies; and
                            ``(iii) national and international climate 
                        change commitments.

``SEC. 706. EMISSION ALLOWANCES.

    ``(a) Creation and Allocation.--
            ``(1) In general.--Subject to paragraphs (2) and (3), there 
        are created, and the Administrator shall allocate in accordance 
        with section 708, emission allowances as follows:
                    ``(A) In the case of sulfur dioxide--
                            ``(i) in the western region--
                                    ``(I) for calendar years 2010 
                                through 2012, emission allowances for 
                                274,500 tons; and
                                    ``(II) for calendar year 2013 and 
                                each calendar year thereafter, emission 
                                allowances for 158,600 tons; and
                            ``(ii) in the nonwestern region--
                                    ``(I) for calendar years 2010 
                                through 2012, emission allowances for 
                                1,975,500 tons; and
                                    ``(II) for calendar year 2013 and 
                                each calendar year thereafter, emission 
                                allowances for 1,141,400 tons.
                    ``(B) In the case of nitrogen oxides--
                            ``(i) for calendar years 2010 through 2012, 
                        emission allowances for 1,510,000 tons; and
                            ``(ii) for calendar year 2013 and each 
                        calendar year thereafter, emission allowances 
                        for 900,000 tons.
                    ``(C) In the case of global warming pollutants, 
                beginning in calendar year 2010, a quantity of emission 
                allowances to be reduced each calendar year to achieve 
                a reduction in emissions of global warming pollutants 
                equal to--
                            ``(i) by December 31, 2011, not more than 
                        2,300,000,000 metric tons of carbon dioxide 
                        equivalent;
                            ``(ii) by December 31, 2015, not more than 
                        2,100,000,000 metric tons of carbon dioxide 
                        equivalent;
                            ``(iii) by December 31, 2020, not more than 
                        1,803,000,000 metric tons of carbon dioxide 
                        equivalent; and
                            ``(iv) by December 31, 2025, not more than 
                        1,500,000,000 metric tons of carbon dioxide 
                        equivalent.
            ``(2) Reductions.--For calendar year 2010 and each calendar 
        year thereafter, the number of emission allowances specified 
        for each covered pollutant in paragraph (1) shall be reduced by 
        a number equal to the sum of--
                    ``(A) the number of tons of the covered pollutant 
                that were emitted by small electric generation 
                facilities in the second preceding calendar year; and
                    ``(B) any number of tons of reductions in emissions 
                of the covered pollutant required under subsection (h).
            ``(3) Updates.--Once every 5 years, the Administrator 
        shall--
                    ``(A) review the formula by which the Administrator 
                allocates allowances under this title; and
                    ``(B) update that formula, as the Administrator 
                determines to be necessary given the results of the 
                review.
    ``(b) Nature of Emission Allowances.--
            ``(1) Not a property right.--An emission allowance 
        allocated by the Administrator under subsection (a) is not a 
        property right.
            ``(2) No limit on authority to terminate or limit.--Nothing 
        in this title or any other provision of law limits the 
        authority of the United States to terminate or limit an 
        emission allowance.
            ``(3) Tracking and transfer of emission allowances.--
                    ``(A) In general.--Not later than 1 year after the 
                date of enactment of this title, the Administrator 
                shall promulgate regulations to establish an emission 
                allowance tracking and transfer system for emission 
                allowances of sulfur dioxide, nitrogen oxides, and 
                global warming pollutants.
                    ``(B) Requirements.--The emission allowance 
                tracking and transfer system established under 
                subparagraph (A) shall--
                            ``(i) incorporate the requirements of 
                        subsections (b) and (d) of section 412 (except 
                        that written certification by the transferee 
                        shall not be necessary to effect a transfer); 
                        and
                            ``(ii) permit any entity--
                                    ``(I) to buy, sell, or hold an 
                                emission allowance; and
                                    ``(II) to permanently retire an 
                                unused emission allowance.
                    ``(C) Proceeds of transfers.--Proceeds from the 
                transfer of emission allowances by any person to which 
                the emission allowances have been allocated--
                            ``(i) shall not constitute funds of the 
                        United States; and
                            ``(ii) shall not be available to meet any 
                        obligations of the United States.
    ``(c) Identification and Use.--
            ``(1) In general.--Each emission allowance allocated by the 
        Administrator shall bear a unique serial number, including--
                    ``(A) an identifier of the covered pollutant to 
                which the emission allowance pertains; and
                    ``(B) the first calendar year for which the 
                allowance may be used.
            ``(2) Sulfur dioxide emission allowances.--In the case of 
        sulfur dioxide emission allowances, the Administrator shall 
        ensure that the emission allowances allocated to electric 
        generation facilities in the western region are distinguishable 
        from emission allowances allocated to electric generation 
        facilities in the nonwestern region.
            ``(3) Year of use.--Each emission allowance may be used in 
        the calendar year for which the emission allowance is allocated 
        or in any subsequent calendar year.
    ``(d) Annual Submission of Emission Allowances.--
            ``(1) In general.--On or before April 1, 2011, and April 1 
        of each year thereafter, the owner or operator of each electric 
        generation facility shall submit to the Administrator 1 
        emission allowance for the applicable covered pollutant (other 
        than mercury) for each ton of sulfur dioxide, nitrogen oxides, 
        or global warming pollutants emitted by the electric generation 
        facility during the preceding calendar year.
            ``(2) Special rule for ozone exceedances.--
                    ``(A) Identification of facilities contributing to 
                nonattainment.--Not later than December 31, 2009, and 
                the end of each 3-year period thereafter, each State, 
                consistent with the obligations of the State under 
                section 110(a)(2)(D), shall identify the electric 
                generation facilities in the State and in other States 
                that are significantly contributing (as determined 
                based on guidance issued by the Administrator) to 
                nonattainment of the national ambient air quality 
                standard for ozone in the State.
                    ``(B) Submission of additional allowances.--In 
                calendar year 2010 and each calendar year thereafter, 
                on petition from a State or a person demonstrating that 
                the control measures in effect at an electric 
                generation facility that is identified under 
                subparagraph (A) as significantly contributing to 
                nonattainment of the national ambient air quality 
                standard for ozone in a State during the preceding 
                calendar year are inadequate to prevent the significant 
                contribution described in subparagraph (A), the 
                Administrator, if the Administrator determines that the 
                electric generation facility is inadequately controlled 
                for nitrogen oxides, may require that the electric 
                generation facility submit 3 nitrogen oxide emission 
                allowances for each ton of nitrogen oxides emitted by 
                the electric generation facility during any period of 
                an exceedance of the national ambient air quality 
                standard for ozone in the State during the preceding 
                calendar year.
            ``(3) Regional limitations for sulfur dioxide.--The 
        Administrator shall not allow--
                    ``(A) the use of sulfur dioxide emission allowances 
                allocated for the western region to meet the 
                obligations under this subsection of electric 
                generation facilities in the nonwestern region; or
                    ``(B) the use of sulfur dioxide emission allowances 
                allocated for the nonwestern region to meet the 
                obligations under this subsection of electric 
                generation facilities in the western region.
    ``(e) Emission Verification, Monitoring, and Recordkeeping.--
            ``(1) In general.--The Administrator shall ensure that 
        Federal regulations, in combination with any applicable State 
        regulations, are adequate to verify, monitor, and document 
        emissions of covered pollutants from electric generation 
        facilities.
            ``(2) Inventory of emissions from small electric generation 
        facilities.--On or before July 1, 2008, the Administrator, in 
        cooperation with State agencies, shall complete, and on an 
        annual basis update, a comprehensive inventory of emissions of 
        sulfur dioxide, nitrogen oxides, global warming pollutants, and 
        particulate matter from small electric generation facilities.
            ``(3) Monitoring information.--
                    ``(A) In general.--Not later than 180 days after 
                the date of enactment of this title, the Administrator 
                shall promulgate regulations to require each electric 
                generation facility to submit to the Administrator--
                            ``(i) not later than April 1 of each year, 
                        verifiable information on covered pollutants 
                        emitted by the electric generation facility in 
                        the preceding calendar year, expressed in--
                                    ``(I) tons of covered pollutants; 
                                and
                                    ``(II) tons of covered pollutants 
                                per megawatt hour of energy (or the 
                                equivalent thermal energy) generated; 
                                and
                            ``(ii) as part of the first submission 
                        under clause (i), verifiable information on 
                        covered pollutants emitted by the electric 
                        generation facility in each of calendar years 
                        2002 through 2006 if the electric generation 
                        facility was required to report that 
                        information in those calendar years.
                    ``(B) Source of information.--Information submitted 
                under subparagraph (A) shall be obtained using a 
                continuous emission monitoring system (as defined in 
                section 402).
                    ``(C) Availability to the public.--The information 
                described in subparagraph (A) shall be made available 
                to the public--
                            ``(i) in the case of the first year in 
                        which the information is required to be 
                        submitted under that subparagraph, not later 
                        than 18 months after the date of enactment of 
                        this title; and
                            ``(ii) in the case of each year thereafter, 
                        not later than April 1 of the year.
            ``(4) Ambient air quality monitoring for sulfur dioxide and 
        hazardous air pollutants.--
                    ``(A) In general.--Beginning January 1, 2008, each 
                coal-fired electric generation facility with an 
                aggregate generating capacity of 50 megawatts or more 
                shall, in accordance with guidelines issued by the 
                Administrator, commence ambient air quality monitoring 
                within a 30-mile radius of the coal-fired electric 
                generation facility for the purpose of measuring 
                maximum concentrations of sulfur dioxide and hazardous 
                air pollutants emitted by the coal-fired electric 
                generation facility.
                    ``(B) Location of monitoring points.--Monitoring 
                under subparagraph (A) shall include monitoring at not 
                fewer than 2 points--
                            ``(i) that are at ground level and within 3 
                        miles of the coal-fired electric generation 
                        facility;
                            ``(ii) at which the concentration of 
                        pollutants being monitored is expected to be 
                        the greatest; and
                            ``(iii) at which the monitoring shall be 
                        the most frequent.
                    ``(C) Frequency of monitoring of sulfur dioxide.--
                Monitoring of sulfur dioxide under subparagraph (A) 
                shall be carried out on a continuous basis and averaged 
                over 5-minute periods.
                    ``(D) Availability to the public.--The results of 
                the monitoring under subparagraph (A) shall be made 
                available to the public.
    ``(f) Excess Emission Penalty.--
            ``(1) In general.--Subject to paragraph (2), section 411 
        shall be applicable to an owner or operator of an electric 
        generation facility.
            ``(2) Calculation of penalty.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the penalty for failure to submit 
                emission allowances for covered pollutants as required 
                under subsection (d) shall be equal to 3 times the 
                product obtained by multiplying--
                            ``(i) as applicable--
                                    ``(I) the number of tons emitted in 
                                excess of the emission limitation 
                                requirement applicable to the electric 
                                generation facility; or
                                    ``(II) the number of emission 
                                allowances that the owner or operator 
                                failed to submit; and
                            ``(ii) the average annual market price of 
                        emission allowances (as determined by the 
                        Administrator).
                    ``(B) Mercury.--In the case of mercury, the penalty 
                shall be equal to 3 times the product obtained by 
                multiplying--
                            ``(i) the number of grams emitted in excess 
                        of the emission limitation requirement for 
                        mercury applicable to the electric generation 
                        facility; and
                            ``(ii) the average cost of mercury controls 
                        at electricity generating units that have a 
                        nameplate capacity of 25 megawatts or more in 
                        all States (as determined by the 
                        Administrator).
    ``(g) Significant Adverse Local Impacts.--
            ``(1) In general.--If the Administrator determines that 
        emissions of an electric generation facility may reasonably be 
        anticipated to cause or contribute to a significant adverse 
        impact on an area (including endangerment of public health, 
        contribution to acid deposition in a sensitive receptor area, 
        and other degradation of the environment), the Administrator 
        shall limit the emissions of the electric generation facility 
        as necessary to avoid that impact.
            ``(2) Violation.--Notwithstanding the availability of 
        emission allowances, it shall be a violation of this Act for 
        any electric generation facility to exceed any limitation on 
        emissions established under paragraph (1).
    ``(h) Additional Reductions.--
            ``(1) Protection of public health or welfare or the 
        environment.--If the Administrator determines that the emission 
        levels necessary to achieve the national emission limitations 
        established under section 705 are not reasonably anticipated to 
        protect public health or welfare or the environment (including 
        protection of children, pregnant women, minority or low-income 
        communities, and other sensitive populations), the 
        Administrator may require reductions in emissions from electric 
        generation facilities in addition to the reductions required 
        under the other provisions of this title.
            ``(2) Emission allowance trading.--
                    ``(A) Studies.--
                            ``(i) In general.--In 2015 and at the end 
                        of each 3-year period thereafter, the 
                        Administrator shall complete a study of the 
                        impacts of the emission allowance trading 
                        authorized under this title.
                            ``(ii) Required assessment.--The study 
                        shall include an assessment of ambient air 
                        quality in areas surrounding electric 
                        generation facilities that participate in 
                        emission allowance trading, including a 
                        comparison between--
                                    ``(I) the ambient air quality in 
                                those areas; and
                                    ``(II) the national average ambient 
                                air quality.
                    ``(B) Limitation on emissions.--If the 
                Administrator determines, based on the results of a 
                study under subparagraph (A), that adverse local 
                impacts result from emission allowance trading, the 
                Administrator may require reductions in emissions from 
                electric generation facilities in addition to the 
                reductions required under the other provisions of this 
                title.
    ``(i) Use of Certain Other Emission Allowances.--
            ``(1) In general.--Subject to paragraph (2), emission 
        allowances or other emission trading instruments created under 
        title I or IV for sulfur dioxide or nitrogen oxides shall not 
        be valid for submission under subsection (d).
            ``(2) Emission allowances placed in reserve.--
                    ``(A) In general.--An emission allowance described 
                in paragraph (1) that was placed in reserve under 
                section 404(a)(2) or 405 or through regulations 
                implementing controls on nitrogen oxides, because an 
                affected unit emitted fewer tons of sulfur dioxide or 
                nitrogen oxides than were permitted under an emission 
                limitation imposed under title I or IV before the date 
                of enactment of this title, shall be valid for 
                submission under subsection (d).
                    ``(B) Emission allowances resulting from 
                achievement of new source performance standards.--If an 
                emission allowance described in subparagraph (A) was 
                created and placed in reserve during the period of 2001 
                through 2009 by the owner or operator of an electric 
                generation facility through the application of 
                pollution control technology that resulted in the 
                achievement and maintenance by the electric generation 
                facility of the applicable standards of performance 
                required of new sources under section 111, the emission 
                allowance shall be valid for submission under 
                subsection (d).

``SEC. 707. PERMITTING AND TRADING OF EMISSION ALLOWANCES.

    ``Not later than 1 year after the date of enactment of this title, 
the Administrator shall promulgate regulations to establish a 
permitting and emission allowance trading compliance program to 
implement the limitations on emissions of covered pollutants from 
electric generation facilities established under section 705.

``SEC. 708. EMISSION ALLOWANCE ALLOCATION.

    ``(a) Sulfur Dioxide and Nitrogen Oxides.--
            ``(1) Initial allocations.--For calendar years 2010 through 
        2012, the Administrator shall allocate emission allowances for 
        sulfur dioxide and nitrogen oxides, consistent with applicable 
        law (including regulations).
            ``(2) Subsequent allocations.--
                    ``(A) In general.--For calendar year 2013 and each 
                calendar year thereafter, the Administrator shall 
                allocate emission allowances for sulfur dioxide and 
                nitrogen oxides as the Administrator determines to be 
                appropriate in accordance with subparagraphs (B) and 
                (C).
                    ``(B) Allocation factors.--In allocating emission 
                allowances for sulfur dioxide and nitrogen oxides under 
                subparagraph (A), the Administrator, in consultation 
                with the Secretary of Commerce, shall take into 
                consideration the factors described in subsection 
                (c)(1).
    ``(b) Global Warming Pollutants.--
            ``(1) In general.--For calendar year 2010, the 
        Administrator shall transfer to each trustee appointed pursuant 
        to paragraph (4)(A) for auction not less than 50 percent of the 
        quantity of emission allowances available for allocation for 
        global warming pollutants for the calendar year for the 
        purposes described in paragraph (4).
            ``(2) Increase in quantity.--For calendar year 2011 and 
        each calendar year thereafter, taking into consideration the 
        factors described in paragraph (3), the Administrator shall 
        successively increase the quantity of emission allowances 
        transferred to trustees for auction under paragraph (1) until, 
        by not later than 15 years after the date of enactment of this 
        title, 100 percent of emission allowances available for 
        allocation for global warming pollutants for a calendar year 
        are available for auction.
            ``(3) Allocation factors.--In transferring emission 
        allowances to trustees for auction under paragraph (1), the 
        Administrator, in consultation with the Secretary of Commerce, 
        shall take into consideration the factors described in 
        subsection (c)(1).
            ``(4) Requirements.--Regulations promulgated to carry out 
        this subsection may provide for, as the Administrator 
        determines to be necessary, the appointment of 1 or more 
        trustees--
                    ``(A)(i) to receive emission allowances for the 
                benefit of households, communities, and other entities;
                    ``(ii) to sell the emission allowances at fair 
                market value; and
                    ``(iii) to distribute the proceeds of any sale of 
                emission allowances to the appropriate beneficiaries; 
                or
                    ``(B) to allocate emission allowances, in 
                accordance with applicable regulations, to--
                            ``(i) communities, individuals, and 
                        companies that have experienced 
                        disproportionate adverse impacts as a result 
                        of--
                                    ``(I) the transition to a lower 
                                carbon-emitting economy; or
                                    ``(II) global warming;
                            ``(ii) owners and operators of highly 
                        energy-efficient buildings, including--
                                    ``(I) residential users;
                                    ``(II) producers of highly energy-
                                efficient products; and
                                    ``(III) entities that carry out 
                                energy-efficiency improvement projects 
                                that result in consumer-side reductions 
                                in electricity use;
                            ``(iii) entities that will use the emission 
                        allowances for the purpose of carrying out 
                        geological sequestration of carbon dioxide 
                        produced by an anthropogenic global warming 
                        pollution emission source in accordance with 
                        requirements established by the Administrator;
                            ``(iv) such individuals and entities as the 
                        Administrator determines to be appropriate, for 
                        use in carrying out projects to reduce net 
                        carbon dioxide emissions through above-ground 
                        and below-ground biological carbon dioxide 
                        sequestration (including sequestration in 
                        forests, forest soils, agricultural soils, 
                        rangeland, or grassland in the United States);
                            ``(v) such individuals and entities 
                        (including fish and wildlife agencies) as the 
                        Administrator determines to be appropriate, for 
                        use in carrying out projects to protect and 
                        restore ecosystems (including fish and 
                        wildlife) affected by climate change; and
                            ``(vi) manufacturers producing consumer 
                        products that result in substantially reduced 
                        global warming pollution emissions, for use in 
                        funding rebates for purchasers of those 
                        products.
    ``(c) Administration.--
            ``(1) Allocation factors.--Before making any allocation or 
        transfer of emission allowances under subsection (a) or (b), 
        the Administrator, in consultation with the Secretary of 
        Commerce, shall take into consideration--
                    ``(A) the distributive effect of the allocations on 
                household income and net worth of individuals;
                    ``(B) the impact of the allocations on corporate 
                income, taxes, and asset value;
                    ``(C) the impact of the allocations on income 
                levels and energy consumption of consumers;
                    ``(D) the effects of the allocations with respect 
                to economic efficiency;
                    ``(E) the ability of electric generation facilities 
                to pass through compliance costs to customers of the 
                electric generation facilities;
                    ``(F) the degree to which the quantity of 
                allocations to the covered sectors should decrease over 
                time; and
                    ``(G) the need to maintain the international 
                competitiveness of United States manufacturing and 
                avoid the additional loss of United States 
                manufacturing jobs.
            ``(2) Allocation recommendations and implementation.--
                    ``(A) In general.--Not later than 2 years after the 
                date of enactment of this title, and before making any 
                allocation or transfer of emission allowances under 
                subsection (a) or (b), the Administrator shall submit a 
                description of any determination of the Administrator 
                relating to the allocation or transfer under that 
                subsection to--
                            ``(i) the Committees on Environment and 
                        Public Works and Commerce, Science, and 
                        Transportation of the Senate; and
                            ``(ii) the Committees on Energy and 
                        Commerce and Science of the House of 
                        Representatives.
                    ``(B) Treatment of determinations.--A determination 
                of the Administrator described in subparagraph (A), and 
                any allocation or transfer of emission allowances made 
                pursuant to such a determination, shall be--
                            ``(i) considered to be a major rule (as 
                        defined in section 804 of title 5, United 
                        States Code); and
                            ``(ii) subject to the requirements of 
                        chapter 8 of that title.
    ``(d) Ratepayer Protection.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Affected facility.--The term `affected 
                facility' means an electric generation facility that 
                uses a conventional coal technology.
                    ``(B) Authorized rate.--The term `authorized rate' 
                means a rate charged for electricity generated by an 
                affected facility that is--
                            ``(i) authorized by an appropriate 
                        regulatory agency; and
                            ``(ii) based on, or calculated to recover, 
                        the reasonable capital and operating costs of 
                        the generation.
                    ``(C) Conventional coal technology.--The term 
                `conventional coal technology' means a technology for 
                the generation of electricity that--
                            ``(i) involves the combustion of coal in a 
                        boiler; and
                            ``(ii) does not provide for the capture or 
                        sequestration of carbon.
            ``(2) Protection.--
                    ``(A) In general.--Subject to paragraph (3) and 
                except as provided in subparagraph (B), no owner or 
                lessor of an affected facility who sells, at wholesale 
                or retail, any electricity generated by the affected 
                facility at an authorized rate shall recover through 
                the authorized rate, in whole or in part, the cost of 
                compliance with any Federal greenhouse gas reduction 
                requirement relating to emissions from the affected 
                facility.
                    ``(B) Exception.--Subparagraph (A) shall not apply 
                to an owner or lessor of an affected facility if the 
                appropriate regulatory agency determines no feasible 
                alternative exists to the use of conventional coal 
                technology by the affected facility.
            ``(3) Applicability.--Paragraph (2)(A) shall apply to an 
        owner or lessor described in that paragraph only if--
                    ``(A) the affected facility enters operation after 
                January 1, 2009; and
                    ``(B) the cost of compliance described in paragraph 
                (2) is incurred after the date of enactment of this 
                title.

``SEC. 709. MERCURY EMISSION LIMITATIONS.

    ``(a) In General.--
            ``(1) Regulations.--
                    ``(A) In general.--Not later than 1 year after the 
                date of enactment of this title, the Administrator 
                shall promulgate regulations to establish emission 
                limitations for mercury emissions by coal-fired 
                electric generation facilities.
                    ``(B) No exceedance of national limitation.--The 
                regulations shall ensure that the national limitation 
                for mercury emissions from each coal-fired electric 
                generation facility established under section 
                705(a)(4)(A) (and, to the maximum extent practicable, 
                the goal described in section 705(a)(4)(B)) is not 
                exceeded.
                    ``(C) Emission limitations for 2012 and 
                thereafter.--In carrying out subparagraph (A), for 
                calendar year 2012 and each calendar year thereafter, 
                the Administrator shall not--
                            ``(i) subject to subsections (e) and (f) of 
                        section 112, establish limitations on emissions 
                        of mercury from coal-fired electric generation 
                        facilities that allow emissions in excess of 
                        2.48 grams of mercury per 1000 megawatt hours; 
                        or
                            ``(ii) differentiate between facilities 
                        that burn different types of coal.
            ``(2) Annual review and determination.--
                    ``(A) In general.--Not later than April 1 of each 
                year, the Administrator shall--
                            ``(i) review the total mercury emissions 
                        during the 2 preceding calendar years from 
                        electric generation facilities located in all 
                        States; and
                            ``(ii) determine whether, during the 2 
                        preceding calendar years, the total mercury 
                        emissions from facilities described in clause 
                        (i) exceeded the national limitation for 
                        mercury emissions established under section 
                        705(a)(4)(A).
                    ``(B) Exceedance of national limitation.--If the 
                Administrator determines under subparagraph (A)(ii) 
                that, during the 2 preceding calendar years, the total 
                mercury emissions from facilities described in 
                subparagraph (A)(i) exceeded the national limitation 
                for mercury emissions established under section 
                705(a)(4)(A), the Administrator shall, not later than 1 
                year after the date of the determination, revise the 
                regulations promulgated under paragraph (1) to reduce 
                the emission rates specified in the regulations as 
                necessary to ensure that the national limitation for 
                mercury emissions is not exceeded in any future year.
            ``(3) Compliance flexibility.--
                    ``(A) In general.--Each coal-fired electric 
                generation facility subject to an emission limitation 
                under this section shall be in compliance with that 
                limitation if that limitation is greater than or equal 
                to the quotient obtained by dividing--
                            ``(i) the total mercury emissions of the 
                        coal-fired electric generation facility during 
                        each 30-day period; by
                            ``(ii) the quantity of electricity 
                        generated by the coal-fired electric generation 
                        facility during that period.
                    ``(B) More than 1 unit at a facility.--In any case 
                in which more than 1 coal-fired electricity generating 
                unit at a coal-fired electric generation facility 
                subject to an emission limitation under this section 
                was operated in 1999 under common ownership or control, 
                compliance with the emission limitation may be 
                determined by averaging the emission rates of all coal-
                fired electricity generating units at the electric 
                generation facility during each 30-day period.
    ``(b) Prevention of Re-Release.--
            ``(1) Regulations.--Not later than July 1, 2008, the 
        Administrator shall promulgate regulations to ensure that any 
        mercury captured or recovered by emission controls installed at 
        an electric generation facility is not re-released into the 
        environment.
            ``(2) Required elements.--The regulations shall require--
                    ``(A) daily covers on all active waste disposal 
                units, and permanent covers on all inactive waste 
                disposal units, to prevent the release of mercury into 
                the air;
                    ``(B) monitoring of groundwater to ensure that 
                mercury or mercury compounds do not migrate from the 
                waste disposal unit;
                    ``(C) waste disposal siting requirements and 
                cleanup requirements to protect groundwater and surface 
                water resources;
                    ``(D) elimination of agricultural application of 
                coal combustion wastes; and
                    ``(E) appropriate limitations on mercury emissions 
                from sources or processes that reprocess or use coal 
                combustion waste, including manufacturers of wallboard 
                and cement.
    ``(c) New Affected Unit Limitation.--An affected unit that enters 
operation on or after the date of enactment of this title shall 
achieve, on an annual average basis, a mercury emission rate of not 
more than 2.48 grams of mercury per 1,000 megawatt hours, regardless of 
the type of coal used at the affected unit.

``SEC. 710. OTHER HAZARDOUS AIR POLLUTANTS.

    ``(a) In General.--Not later than January 1, 2008, the 
Administrator shall issue to owners and operators of coal-fired 
electric generation facilities requests for information under section 
114 that are of sufficient scope to generate data sufficient to support 
issuance of standards under section 112(d) for hazardous air pollutants 
other than mercury emitted by coal-fired electric generation 
facilities.
    ``(b) Deadline for Submission of Requested Information.--The 
Administrator shall require each recipient of a request for information 
described in subsection (a) to submit the requested data not later than 
180 days after the date of the request.
    ``(c) Promulgation of Emission Standards.--The Administrator 
shall--
            ``(1) not later than January 1, 2008, propose emission 
        standards under section 112(d) for hazardous air pollutants 
        other than mercury; and
            ``(2) not later than January 1, 2009, promulgate emission 
        standards under section 112(d) for hazardous air pollutants 
        other than mercury.
    ``(d) Prohibition on Excess Emissions.--It shall be unlawful for an 
electric generation facility subject to standards for hazardous air 
pollutants other than mercury promulgated under subsection (c) to emit, 
after December 31, 2010, any such pollutant in excess of the standards.
    ``(e) Effect on Other Law.--Nothing in this section or section 709 
affects any requirement of subsection (e), (f)(2), or (n)(1)(A) of 
section 112, except that the emission limitations established by 
regulations promulgated under this section shall be deemed to represent 
the maximum achievable control technology for mercury emissions from 
electricity generating units under section 112(d).

``SEC. 711. EMISSION STANDARDS FOR AFFECTED UNITS.

    ``(a) Definition of Affected Unit.--In this subsection, the term 
`affected unit' means a unit that--
            ``(1) is designed and intended to provide electricity at a 
        unit capacity factor of at least 60 percent; and
            ``(2) begins operation after December 31, 2011.
    ``(b) Initial Standard.--
            ``(1) In general.--Not later than 2 years after the date of 
        enactment of this title, the Administrator shall promulgate 
        regulations requiring each affected unit to meet the standard 
        described in paragraph (2).
            ``(2) Standard.--Beginning on December 31, 2015, an 
        affected unit shall meet a global warming pollution emission 
        standard that is not higher than the emission rate of a new 
        combined cycle natural gas generating unit.
            ``(3) More stringent requirements.--For the period 
        beginning on January 1 of the calendar year following the 
        effective date of the regulations promulgated pursuant to 
        paragraph (1) and ending on December 31, 2029, the 
        Administrator may increase the stringency of the global warming 
        pollution emission standard described in paragraph (2) with 
        respect to affected units as the Administrator determines to be 
        appropriate to ensure a reduction in the emission rate of 
        global warming pollutants of at least 90 percent from each 
        affected unit.
    ``(c) Final Standard.--Not later than December 31, 2030, the 
Administrator shall require each unit that is designed and intended to 
provide electricity at a unit capacity factor of at least 60 percent, 
regardless of the date on which the unit entered operation, to meet the 
applicable emission standard under subsection (b).
    ``(d) Adjustment of Requirements.--If the Academy determines, 
pursuant to section 705(e), that a requirement of this section is or 
will be technologically infeasible at the time at which the requirement 
becomes effective, the Administrator, by regulation, may adjust or 
delay the effective date of the requirement as the Administrator 
determines to be necessary, taking into consideration the determination 
of the Academy.

``SEC. 712. LOW-CARBON GENERATION REQUIREMENT.

    ``(a) Definitions.--In this section:
            ``(1) Base quantity of electricity.--The term `base 
        quantity of electricity' means the total quantity of 
        electricity produced for sale by a covered generator during the 
        calendar year immediately preceding a compliance year from--
                    ``(A) coal;
                    ``(B) petroleum coke;
                    ``(C) lignite; or
                    ``(D) any combination of the fuels described in 
                subparagraphs (A) through (C).
            ``(2) Covered generator.--The term `covered generator' 
        means an electric generation facility that--
                    ``(A) has a rated capacity of 25 megawatts or more; 
                and
                    ``(B) has an annual fuel input at least 50 percent 
                of which is provided by--
                            ``(i) coal;
                            ``(ii) petroleum coke;
                            ``(iii) lignite; or
                            ``(iv) any combination of the fuels 
                        described in clauses (i) through (iii).
            ``(3) Low-carbon generation.--The term `low-carbon 
        generation' means electric energy generated from an electric 
        generation facility at least 50 percent of the annual fuel 
        input of which, in any year--
                    ``(A) is provided by--
                            ``(i) coal;
                            ``(ii) petroleum coke;
                            ``(iii) lignite; or
                            ``(iv) any combination of the fuels 
                        described in clauses (i) through (iii); and
                    ``(B) results in an emission rate into the 
                atmosphere of not more than 250 pounds of carbon 
                dioxide per megawatt-hour (after adjustment for any 
                carbon dioxide emitted from the electric generation 
                facility that is geologically sequestered in a 
                geological repository approved by the Administrator 
                pursuant to section 713).
            ``(4) Program.--The term `program' means the low-carbon 
        generation credit trading program established under subsection 
        (d)(1).
    ``(b) Requirement.--
            ``(1) Calendar years 2015 through 2020.--Of the base 
        quantity of electricity produced for sale by a covered 
        generator for a calendar year, the covered generator shall 
        provide a minimum percentage of that base quantity of 
        electricity for the calendar year from low-carbon generation, 
        as specified in the following table:

``Calendar year:                    Minimum annual percentage:
  2015............................  0.5
  2016............................  1.0
  2017............................  2.0
  2018............................  3.0
  2019............................  4.0
  2020............................  5.0

            ``(2) Calendar years 2021 through 2025.--For each of 
        calendar years 2021 through 2025, the Administrator may 
        increase the minimum percentage of the base quantity of 
        electricity from low-carbon generation described in paragraph 
        (1) by not more than 2 percentage points from the preceding 
        year, as the Administrator determines to be necessary to 
        achieve the emission reduction goal described in section 
        705(a)(3).
            ``(3) Calendar years 2026 through 2030.--For each of 
        calendar years 2026 through 2030, the Administrator may 
        increase the minimum percentage of the base quantity of 
        electricity from low-carbon generation described in paragraph 
        (1) by not more than 3 percentage points from the preceding 
        year, as the Administrator determines to be necessary to 
        achieve the emission reduction goal described in section 
        705(a)(3).
    ``(c) Means of Compliance.--An owner or operator of a covered 
generator shall comply with subsection (b) by--
            ``(1) generating electric energy using low-carbon 
        generation;
            ``(2) purchasing electric energy generated by low-carbon 
        generation;
            ``(3) purchasing low-carbon generation credits issued under 
        the program; or
            ``(4) any combination of the actions described in 
        paragraphs (1) through (3).
    ``(d) Low-Carbon Generation Credit Trading Program.--
            ``(1) In general.--Not later than January 1, 2008, the 
        Administrator shall establish, by regulation, after notice and 
        opportunity for comment, a low-carbon generation trading 
        program to permit an owner or operator of a covered generator 
        that does not generate or purchase enough electric energy from 
        low-carbon generation to comply with subsection (b) to achieve 
        that compliance by purchasing sufficient low-carbon generation 
        credits.
            ``(2) Requirements.--In carrying out the program, the 
        Administrator shall--
                    ``(A) issue to producers of low-carbon generation, 
                on a quarterly basis, a single low-carbon generation 
                credit for each kilowatt hour of low-carbon generation 
                sold during the preceding quarter; and
                    ``(B) ensure that a kilowatt hour, including the 
                associated low-carbon generation credit, shall be used 
                only once for purposes of compliance with subsection 
                (b).
    ``(e) Enforcement.--An owner or operator of a covered generator 
that fails to comply with subsection (b) shall be subject to a civil 
penalty in an amount equal to the product obtained by multiplying--
            ``(1) the number of kilowatt-hours of electric energy sold 
        to electric consumers in violation of subsection (b); and
            ``(2) the greater of--
                    ``(A) 2.5 cents (as adjusted under subsection (g)); 
                or
                    ``(B) 200 percent of the average market value of 
                those low-carbon generation credits during the year in 
                which the violation occurred.
    ``(f) Exemption.--This section shall not apply, for any calendar 
year, to an owner or operator of a covered generator that sold less 
than 40,000 megawatt-hours of electric energy produced from covered 
generators during the preceding calendar year.
    ``(g) Inflation Adjustment.--Not later than December 31, 2008, and 
annually thereafter, the Administrator shall adjust the amount of the 
civil penalty for each kilowatt-hour calculated under subsection (e)(2) 
to reflect changes for the 12-month period ending on the preceding 
November 30 in the Consumer Price Index for All Urban Consumers 
published by the Bureau of Labor Statistics of the Department of Labor.
    ``(h) Technological Infeasibility.--If the Academy determines, 
pursuant to section 705(e), that the schedule for compliance described 
in subsection (b) is or will be technologically infeasible for covered 
generators to meet, the Administrator, by regulation, may adjust the 
schedule as the Administrator determines to be necessary, taking into 
consideration the determination of the Academy.
    ``(i) Termination of Authority.--This section and the authority 
provided by this section shall terminate on December 31, 2030.

``SEC. 713. GEOLOGICAL DISPOSAL OF GLOBAL WARMING POLLUTANTS.

    ``(a) Geological Carbon Dioxide Disposal Deployment Projects.--
            ``(1) In general.--The Administrator shall establish a 
        competitive grant program to provide grants to 5 entities for 
        the deployment of projects to geologically dispose of carbon 
        dioxide (referred to in this subsection as `geological disposal 
        deployment projects').
            ``(2) Location.--Each geological disposal deployment 
        project shall be conducted in a geologically distinct location 
        in order to demonstrate the suitability of a variety of 
        geological structures for carbon dioxide disposal.
            ``(3) Components.--Each geological disposal deployment 
        project shall include an analysis of--
                    ``(A) mechanisms for trapping the carbon dioxide to 
                be geologically disposed;
                    ``(B) techniques for monitoring the geologically 
                disposed carbon dioxide;
                    ``(C) public response to the geological disposal 
                deployment project; and
                    ``(D) the permanency of carbon dioxide storage in 
                geological reservoirs.
            ``(4) Requirements.--
                    ``(A) In general.--Not later than 2 years after the 
                date of enactment of this title, the Administrator 
                shall establish--
                            ``(i) appropriate conditions for 
                        environmental protection with respect to 
                        geological disposal deployment projects to 
                        protect public health and the environment, 
                        including--
                                    ``(I) site characterization and 
                                selection;
                                    ``(II) geomechanical, geochemical, 
                                and hydrogeological simulation;
                                    ``(III) risk assessment;
                                    ``(IV) mitigation and remediation 
                                protocols;
                                    ``(V) the issuance of permits for 
                                test, injection, and monitoring wells;
                                    ``(VI) specifications for the 
                                drilling, construction, and maintenance 
                                of wells;
                                    ``(VII) ownership of subsurface 
                                rights and pore space;
                                    ``(VIII) transportation pipeline 
                                specifications;
                                    ``(IX) the allowed composition of 
                                injected matter;
                                    ``(X) testing, monitoring, 
                                measurement, and verification for the 
                                entire chain of operations, beginning 
                                with the point of capture of carbon 
                                dioxide to a storage site;
                                    ``(XI) closure and decommissioning 
                                procedures;
                                    ``(XII) transportation pipeline 
                                siting; and
                                    ``(XIII) short- and long-term legal 
                                responsibility and indemnification 
                                procedures for storage sites; and
                            ``(ii) requirements relating to 
                        applications for grants under this subsection.
                    ``(B) Rulemaking.--The establishment of 
                requirements under subparagraph (A) shall not require a 
                rulemaking.
                    ``(C) Minimum requirements.--At a minimum, each 
                application for a grant under this subsection shall 
                include--
                            ``(i) a description of the geological 
                        disposal deployment project proposed in the 
                        application;
                            ``(ii) an estimate of the quantity of 
                        carbon dioxide to be geologically disposed over 
                        the life of the geological disposal deployment 
                        project; and
                            ``(iii) a plan to collect and disseminate 
                        data relating to each geological disposal 
                        deployment project to be funded by the grant.
            ``(5) Partners.--An applicant for a grant under this 
        subsection may carry out a geological disposal deployment 
        project under a pilot program in partnership with 1 or more 
        public or private entities.
            ``(6) Selection criteria.--In evaluating applications under 
        this subsection, the Administrator shall--
                    ``(A) consider the previous experience of each 
                applicant with similar projects; and
                    ``(B) give priority consideration to applications 
                for geological disposal deployment projects that--
                            ``(i) offer the greatest geological 
                        diversity, as compared to other geological 
                        disposal deployment projects that received 
                        grants under this subsection;
                            ``(ii) are located in closest proximity to 
                        a source of carbon dioxide;
                            ``(iii) make use of the most affordable 
                        source of carbon dioxide;
                            ``(iv) are expected to geologically dispose 
                        of--
                                    ``(I) the largest quantity of 
                                carbon dioxide; and
                                    ``(II) a minimum quantity of 
                                1,000,000 tons of carbon dioxide for 
                                each project carried out as part of the 
                                demonstration project;
                            ``(v) are combined with demonstrations of 
                        advanced coal electricity generation 
                        technologies;
                            ``(vi) demonstrate the greatest commitment 
                        on the part of the applicant to ensure funding 
                        for the proposed demonstration project and the 
                        greatest likelihood that the demonstration 
                        project will be maintained or expanded after 
                        Federal assistance under this subsection is 
                        completed; and
                            ``(vii) minimize any adverse environmental 
                        effects from the project.
            ``(7) Period of grants.--
                    ``(A) In general.--A geological disposal deployment 
                project funded by a grant under this subsection shall 
                begin construction not later than 3 years after the 
                date on which the grant is provided.
                    ``(B) Term.--The Administrator shall not provide 
                grant funds to any applicant under this subsection for 
                a period of more than 5 years.
            ``(8) Transfer of information and knowledge.--The 
        Administrator shall establish mechanisms to ensure that the 
        information and knowledge gained by participants in the program 
        are published and disseminated, including to other applicants 
        that submitted applications for a grant under this subsection.
            ``(9) Schedule.--
                    ``(A) Publication.--Not later than 180 days after 
                the date of enactment of this title, the Administrator 
                shall publish in the Federal Register, and elsewhere as 
                appropriate, a request for applications to carry out 
                geological disposal deployment projects.
                    ``(B) Date for applications.--An application for a 
                grant under this subsection shall be submitted not 
                later than 180 days after the date of publication of 
                the request under subparagraph (A).
                    ``(C) Selection.--After the date by which 
                applications for grants are required to be submitted 
                under subparagraph (B), the Administrator, in a timely 
                manner, shall select, after peer review and based on 
                the criteria under paragraph (6), those geological 
                disposal deployment projects to be provided a grant 
                under this subsection.
    ``(b) Interim Standards.--Not later than 3 years after the date of 
enactment of this title, the Administrator, in consultation with the 
Secretary of Energy, shall, by regulation, establish interim geological 
carbon dioxide disposal standards that address--
            ``(1) site selection;
            ``(2) permitting processes;
            ``(3) monitoring requirements;
            ``(4) public participation; and
            ``(5) such other issues as the Administrator and the 
        Secretary of Energy determine to be appropriate.
    ``(c) Final Standards.--Not later than 6 years after the date of 
enactment of this title, taking into consideration the results of 
geological disposal deployment projects carried out under subsection 
(a), the Administrator, by regulation, shall establish final geological 
carbon dioxide disposal standards.
    ``(d) Considerations.--In developing standards under subsections 
(b) and (c), the Administrator shall consider the experience in the 
United States in regulating--
            ``(1) underground injection of waste;
            ``(2) enhanced oil recovery;
            ``(3) short-term storage of natural gas; and
            ``(4) long-term waste storage.
    ``(e) Termination of Authority.--This section and the authority 
provided by this section shall terminate on December 31, 2030.

``SEC. 714. ENERGY EFFICIENCY PERFORMANCE STANDARD.

    ``(a) Definitions.--In this section:
            ``(1) Electricity savings.--
                    ``(A) In general.--The term `electricity savings' 
                means reductions in end-use electricity consumption 
                relative to consumption by the same customer or at the 
                same new or existing facility in a given year, as 
                defined in regulations promulgated by the Administrator 
                under subsection (e).
                    ``(B) Inclusions.--The term `electricity savings' 
                includes savings achieved as a result of--
                            ``(i) installation of energy-saving 
                        technologies and devices; and
                            ``(ii) the use of combined heat and power 
                        systems, fuel cells, or any other technology 
                        identified by the Administrator that recaptures 
                        or generates energy solely for onsite customer 
                        use.
                    ``(C) Exclusion.--The term `electricity savings' 
                does not include savings from measures that would 
                likely be adopted in the absence of energy-efficiency 
                programs, as determined by the Administrator.
            ``(2) Retail electricity sales.--The term `retail 
        electricity sales' means the total quantity of electric energy 
        sold by a retail electricity supplier to retail customers 
        during the most recent calendar year for which that information 
        is available.
            ``(3) Retail electricity supplier.--The term `retail 
        electricity supplier' means a distribution or integrated 
        utility, or an independent company or entity, that sells 
        electric energy to consumers.
    ``(b) Energy Efficiency Performance Standard.--Each retail 
electricity supplier shall implement programs and measures to achieve 
improvements in energy efficiency and peak load reduction, as verified 
by the Administrator.
    ``(c) Targets.--For calendar year 2008 and each calendar year 
thereafter, the Administrator shall ensure that retail electric 
suppliers annually achieve electricity savings and reduce peak power 
demand and electricity use by retail customers by a percentage that is 
not less than the applicable target percentage specified in the 
following table:

------------------------------------------------------------------------
                                Reduction in peak       Reduction in
        Calendar Year                demand            electricity use
------------------------------------------------------------------------
2008........................  .25 percent.........  .25 percent
2009........................  .75 percent.........  .75 percent
2010........................  1.75 percent........  1.5 percent
2011........................  2.75 percent........  2.25 percent
2012........................  3.75 percent........  3.0 percent
2013........................  4.75 percent........  3.75 percent
2014........................  5.75 percent........  4.5 percent
2015........................  6.75 percent........  5.25 percent
2016........................  7.75 percent........  6.0 percent
2017........................  8.75 percent........  6.75 percent
2018........................  9.75 percent........  7.5 percent
2019........................  10.75 percent.......  8.25 percent
2020 and each calendar year   11.75 percent.......  9.0 percent
 thereafter.
------------------------------------------------------------------------

    ``(d) Beginning Date.--For the purpose of meeting the targets 
established under subsection (c), electricity savings shall be 
calculated based on the sum of--
            ``(1) electricity savings realized as a result of actions 
        taken by the retail electric supplier during the specified 
        calendar year; and
            ``(2) cumulative electricity savings realized as a result 
        of electricity savings achieved in all preceding calendar years 
        (beginning with calendar year 2006).
    ``(e) Implementing Regulations.--
            ``(1) In general.--Not later than 1 year after the date of 
        enactment of this title, the Administrator shall promulgate 
        regulations to implement the targets established under 
        subsection (c).
            ``(2) Requirements.--The regulations shall establish--
                    ``(A) a national credit system permitting credits 
                to be awarded, bought, sold, or traded by and among 
                retail electricity suppliers;
                    ``(B) a fee equivalent to not less than 4 cents per 
                kilowatt hour for retail energy suppliers that do not 
                meet the targets established under subsection (c); and
                    ``(C) standards for monitoring and verification of 
                electricity use and demand savings reported by the 
                retail electricity suppliers.
            ``(3) Consideration of transmission and distribution 
        efficiency.--In developing regulations under this subsection, 
        the Administrator shall consider whether electricity savings, 
        in whole or part, achieved by retail electricity suppliers by 
        improving the efficiency of electric distribution and use 
        should be eligible for credits established under this section.
    ``(f) Compliance With State Law.--Nothing in this section 
supersedes or otherwise affects any State or local law requiring, or 
otherwise relating to, reductions in total annual electricity 
consumption or peak power consumption by electric consumers to the 
extent that the State or local law requires more stringent reductions 
than the reductions required under this section.
    ``(g) Voluntary Participation.--The Administrator may--
            ``(1) pursuant to the regulations promulgated under 
        subsection (e)(1), issue a credit to any entity that is not a 
        retail electric supplier if the entity implements electricity 
        savings; and
            ``(2) in a case in which an entity described in paragraph 
        (1) is a nonprofit or educational organization, provide to the 
        entity 1 or more grants in lieu of a credit.

``SEC. 715. RENEWABLE PORTFOLIO STANDARD.

    ``(a) Renewable Energy.--
            ``(1) In general.--The Administrator, in consultation with 
        the Secretary of Energy, shall promulgate regulations defining 
        the types and sources of renewable energy generation that may 
        be carried out in accordance with this section.
            ``(2) Inclusions.--In promulgating regulations under 
        paragraph (1), the Administrator shall include of all types of 
        renewable energy (as defined in section 203(b) of the Energy 
        Policy Act of 2005 (42 U.S.C. 15852(b))) other than energy 
        generated from--
                    ``(A) municipal solid waste;
                    ``(B) wood contaminated with plastics or metals; or
                    ``(C) tires.
    ``(b) Renewable Energy Requirement.--Of the base quantity of 
electricity sold by each retail electric supplier to electric consumers 
during a calendar year, the quantity generated by renewable energy 
sources shall be not less than the following percentages:

``Calendar year:                    Minimum annual percentage:
  2008 through 2009...............  5
  2010 through 2014...............  10
  2015 through 2019...............  15
  2020 and subsequent years.......  20

    ``(c) Renewable Energy Credit Program.--Not later than 1 year after 
the date of enactment of this title, the Administrator shall 
establish--
            ``(1) a program to issue, establish the value of, monitor 
        the sale or exchange of, and track renewable energy credits; 
        and
            ``(2) penalties for any retail electric supplier that does 
        not comply with this section.
    ``(d) Prohibition on Double Counting.--A renewable energy credit 
issued under subsection (c)--
            ``(1) may be counted toward meeting the requirements of 
        subsection (b) only once; and
            ``(2) shall vest with the owner of the system or facility 
        that generates the renewable energy that is covered by the 
        renewable energy credit, unless the owner explicitly transfers 
        the renewable energy credit.
    ``(e) Sale Under PURPA Contract.--If the Administrator, after 
consultation with the Secretary of Energy, determines that a renewable 
energy generator is selling electricity to comply with this section to 
a retail electric supplier under a contract subject to section 210 of 
the Public Utilities Regulatory Policies Act of 1978 (16 U.S.C. 824a-
3), the retail electric supplier shall be treated as the generator of 
the electric energy for the purposes of this title for the duration of 
the contract.
    ``(f) State Programs.--Nothing in this section precludes any State 
from requiring additional renewable energy generation under any State 
renewable energy program.
    ``(g) Voluntary Participation.--The Administrator may issue a 
renewable energy credit pursuant to subsection (c) to any entity that 
is not subject to this section only if the entity applying for the 
renewable energy credit meets the terms and conditions of this section 
to the same extent as retail electric suppliers subject to this 
section.

``SEC. 716. STANDARDS TO ACCOUNT FOR BIOLOGICAL SEQUESTRATION OF 
              CARBON.

    ``(a) In General.--Not later than 2 years after the date of 
enactment of title, the Secretary of Agriculture, with the concurrence 
of the Administrator, shall establish standards for accrediting 
certified reductions in the emission of carbon dioxide through above-
ground and below-ground biological sequestration activities.
    ``(b) Requirements.--The standards shall include--
            ``(1) a national biological carbon storage baseline or 
        inventory; and
            ``(2) measurement, monitoring, and verification guidelines 
        based on--
                    ``(A) measurement of increases in carbon storage in 
                excess of the carbon storage that would have occurred 
                in the absence of a new management practice designed to 
                achieve biological sequestration of carbon;
                    ``(B) comprehensive carbon accounting that--
                            ``(i) reflects sustained net increases in 
                        carbon reservoirs; and
                            ``(ii) takes into account any carbon 
                        emissions resulting from disturbance of carbon 
                        reservoirs in existence as of the date of 
                        commencement of any new management practice 
                        designed to achieve biological sequestration of 
                        carbon;
                    ``(C) adjustments to account for--
                            ``(i) emissions of carbon that may result 
                        at other locations as a result of the impact of 
                        the new biological sequestration management 
                        practice on timber supplies; or
                            ``(ii) potential displacement of carbon 
                        emissions to other land owned by the entity 
                        that carries out the new biological 
                        sequestration management practice; and
                    ``(D) adjustments to reflect the expected carbon 
                storage over various time periods, taking into account 
                the likely duration of the storage of carbon in a 
                biological reservoir.
    ``(c) Updating of Standards.--Not later than 3 years after the date 
of establishment of the standards under subsection (a), and every 3 
years thereafter, the Secretary of Agriculture shall update the 
standards to take into consideration the most recent scientific 
information.

``SEC. 717. EFFECT OF FAILURE TO PROMULGATE REGULATIONS.

    ``If the Administrator fails to promulgate regulations to implement 
and enforce the limitations specified in section 705--
            ``(1)(A) each electric generation facility shall achieve, 
        not later than January 1, 2010, an annual quantity of emissions 
        that is less than or equal to--
                    ``(i) in the case of nitrogen oxides, 15 percent of 
                the annual emissions by a similar electric generation 
                facility that has no controls for emissions of nitrogen 
                oxides; and
                    ``(ii) in the case of global warming pollutants, 75 
                percent of the annual emissions by a similar electric 
                generation facility that has no controls for emissions 
                of global warming pollutants; and
            ``(B) each electric generation facility that does not use 
        natural gas as the primary combustion fuel shall achieve, not 
        later than January 1, 2010, an annual quantity of emissions 
        that is less than or equal to--
                    ``(i) in the case of sulfur dioxide, 5 percent of 
                the annual emissions by a similar electric generation 
                facility that has no controls for emissions of sulfur 
                dioxide; and
                    ``(ii) in the case of mercury, 10 percent of the 
                annual emissions by a similar electric generation 
                facility that has no controls included specifically for 
                the purpose of controlling emissions of mercury; and
            ``(2) the applicable permit under this Act for each 
        electric generation facility shall be deemed to incorporate a 
        requirement for achievement of the reduced levels of emissions 
        specified in paragraph (1).

``SEC. 718. PROHIBITIONS.

    ``It shall be unlawful--
            ``(1) for the owner or operator of any electric generation 
        facility--
                    ``(A) to operate the electric generation facility 
                in noncompliance with the requirements of this title 
                (including any regulations implementing this title);
                    ``(B) to fail to submit by the required date any 
                emission allowances, or pay any penalty, for which the 
                owner or operator is liable under section 706;
                    ``(C) to fail to provide and comply with any plan 
                to offset excess emissions required under section 
                706(f); or
                    ``(D) to emit mercury in excess of the emission 
                limitations established under section 709; or
            ``(2) for any person to hold, use, or transfer any emission 
        allowance allocated under this title except in accordance with 
        regulations promulgated by the Administrator.

``SEC. 719. MODERNIZATION OF ELECTRIC GENERATION FACILITIES.

    ``(a) In General.--Beginning on the later of January 1, 2015, or 
the date that is 40 years after the date on which the electric 
generation facility commences operation, each electric generation 
facility shall be subject to emission limitations reflecting the 
application of best available control technology on a new major source 
of a similar size and type (as determined by the Administrator) as 
determined in accordance with the procedures specified in part C of 
title I.
    ``(b) Additional Requirements.--The requirements of this section 
shall be in addition to the other requirements of this title.

``SEC. 720. PARAMOUNT INTEREST WAIVER.

    ``(a) In General.--If the President determines that a national 
security emergency exists and, in light of information that was not 
available as of the date of enactment of this title, that it is in the 
paramount interest of the United States to modify any requirement under 
this title to minimize the effects of the emergency, the President, 
after opportunity for notice and public comment, may temporarily 
adjust, suspend, or waive any regulation promulgated pursuant to this 
title to achieve that minimization.
    ``(b) Consultation.--In making an emergency determination under 
subsection (a), the President, to the maximum extent practicable, shall 
consult with and take into consideration any advice received from--
            ``(1) the Academy;
            ``(2) the Secretary of Energy; or
            ``(3) the Administrator.
    ``(c) Judicial Review.--An emergency determination under subsection 
(a) shall be subject to judicial review under section 307.

``SEC. 721. RELATIONSHIP TO OTHER LAW.

    ``(a) In General.--Except as expressly provided in this title, 
nothing in this title--
            ``(1) limits or otherwise affects the application of any 
        other provision of this Act; or
            ``(2) precludes a State from adopting and enforcing any 
        requirement for the control of emissions of air pollutants that 
        is more stringent than the requirements imposed under this 
        title.
    ``(b) Regional Seasonal Emission Controls.--Nothing in this title 
affects any regional seasonal emission control for nitrogen oxides 
established by the Administrator or a State under title I.''.
    (b) Conforming Amendment.--Section 412(a) of the Clean Air Act (42 
U.S.C. 7651k(a)) is amended in the first sentence by striking 
``opacity'' and inserting ``mercury, opacity,''.

SEC. 3. SAVINGS CLAUSE.

    Section 193 of the Clean Air Act (42 U.S.C. 7515) is amended by 
striking ``date of the enactment of the Clean Air Act Amendments of 
1990'' each place it appears and inserting ``date of enactment of the 
Clean Power Act of 2007''.

SEC. 4. ACID PRECIPITATION RESEARCH PROGRAM.

    Section 103(j) of the Clean Air Act (42 U.S.C. 7403(j)) is 
amended--
            (1) in paragraph (3)--
                    (A) in subparagraph (F)(i), by striking ``effects; 
                and'' and inserting ``effects, including an assessment 
                of--
                                    ``(I) acid-neutralizing capacity; 
                                and
                                    ``(II) changes in the number of 
                                water bodies in the sensitive 
                                ecosystems referred to in subparagraph 
                                (G)(ii) with an acid-neutralizing 
                                capacity greater than zero; and''; and
                    (B) by adding at the end the following:
                    ``(G) Sensitive ecosystems.--
                            ``(i) In general.--Beginning in 2008, and 
                        every 4 years thereafter, the report under 
                        subparagraph (E) shall include--
                                    ``(I) an identification of 
                                environmental objectives necessary to 
                                be achieved (and related indicators to 
                                be used in measuring achievement of the 
                                objectives) to adequately protect and 
                                restore sensitive ecosystems; and
                                    ``(II) an assessment of the status 
                                and trends of the environmental 
                                objectives and indicators identified in 
                                preceding reports under this paragraph.
                            ``(ii) Sensitive ecosystems to be 
                        addressed.--Sensitive ecosystems to be 
                        addressed under clause (i) include--
                                    ``(I) the Adirondack Mountains, 
                                mid-Appalachian Mountains, Rocky 
                                Mountains, and southern Blue Ridge 
                                Mountains;
                                    ``(II) the Great Lakes, Lake 
                                Champlain, Long Island Sound, and the 
                                Chesapeake Bay; and
                                    ``(III) other sensitive ecosystems, 
                                as determined by the Administrator.
                    ``(H) Acid deposition standards.--Beginning in 
                2008, and every 4 years thereafter, the report under 
                subparagraph (E) shall include a revision of the report 
                under section 404 of Public Law 101-549 (42 U.S.C. 7651 
                note) that includes a reassessment of the health and 
                chemistry of the lakes and streams that were subjects 
                of the original report under that section.''; and
            (2) by adding at the end the following:
            ``(4) Protection of sensitive ecosystems.--
                    ``(A) Determination.--Not later than December 31, 
                2014, the Administrator, taking into consideration the 
                findings and recommendations of the report revisions 
                under paragraph (3)(H), shall determine whether 
                emission reductions under titles IV and VII are 
                sufficient to--
                            ``(i) achieve the necessary reductions 
                        identified under paragraph (3)(F); and
                            ``(ii) ensure achievement of the 
                        environmental objectives identified under 
                        paragraph (3)(G).
                    ``(B) Regulations.--
                            ``(i) In general.--Not later than 2 years 
                        after the Administrator makes a determination 
                        under subparagraph (A) that emission reductions 
                        are not sufficient, the Administrator shall 
                        promulgate regulations to protect the sensitive 
                        ecosystems referred to in paragraph (3)(G)(ii).
                            ``(ii) Contents.--Regulations under clause 
                        (i) shall include modifications to--
                                    ``(I) provisions relating to 
                                nitrogen oxide and sulfur dioxide 
                                emission reductions;
                                    ``(II) provisions relating to 
                                allocations of nitrogen oxide and 
                                sulfur dioxide allowances; and
                                    ``(III) such other provisions as 
                                the Administrator determines to be 
                                necessary.''.

SEC. 5. AUTHORIZATION OF APPROPRIATIONS FOR DEPOSITION MONITORING.

    (a) Operational Support.--In addition to amounts made available 
under any other law, there are authorized to be appropriated for each 
of fiscal years 2008 through 2017--
            (1) for operational support of the National Atmospheric 
        Deposition Program National Trends Network--
                    (A) $2,000,000 to the United States Geological 
                Survey;
                    (B) $600,000 to the Environmental Protection 
                Agency;
                    (C) $600,000 to the National Park Service; and
                    (D) $400,000 to the Forest Service;
            (2) for operational support of the National Atmospheric 
        Deposition Program Mercury Deposition Network--
                    (A) $400,000 to the Environmental Protection 
                Agency;
                    (B) $400,000 to the United States Geological 
                Survey;
                    (C) $100,000 to the National Oceanic and 
                Atmospheric Administration; and
                    (D) $100,000 to the National Park Service;
            (3) for the National Atmospheric Deposition Program 
        Atmospheric Integrated Research Monitoring Network $1,500,000 
        to the National Oceanic and Atmospheric Administration;
            (4) for the Clean Air Status and Trends Network $5,000,000 
        to the Environmental Protection Agency; and
            (5) for the Temporally Integrated Monitoring of Ecosystems 
        and Long-Term Monitoring Program $2,500,000 to the 
        Environmental Protection Agency.
    (b) Modernization.--In addition to amounts made available under any 
other law, there are authorized to be appropriated--
            (1) for equipment and site modernization of the National 
        Atmospheric Deposition Program National Trends Network 
        $6,000,000 to the Environmental Protection Agency;
            (2) for equipment and site modernization and network 
        expansion of the National Atmospheric Deposition Program 
        Mercury Deposition Network $2,000,000 to the Environmental 
        Protection Agency;
            (3) for equipment and site modernization and network 
        expansion of the National Atmospheric Deposition Program 
        Atmospheric Integrated Research Monitoring Network $1,000,000 
        to the National Oceanic and Atmospheric Administration; and
            (4) for equipment and site modernization and network 
        expansion of the Clean Air Status and Trends Network $4,600,000 
        to the Environmental Protection Agency.
    (c) Availability of Amounts.--Each of the amounts appropriated 
under subsection (b) shall remain available until expended.

SEC. 6. TECHNICAL AMENDMENTS.

    Title IV of the Clean Air Act (relating to noise pollution) (42 
U.S.C. 7641 et seq.)--
            (1) is amended by redesignating sections 401 through 403 as 
        sections 801 through 803, respectively; and
            (2) is redesignated as title VIII and moved to appear at 
        the end of that Act.
                                 <all>
```