SENSE Act

To establish the bases by which the Administrator of the Environmental Protection Agency shall issue, implement, and enforce certain emission limitations and allocations for existing electric utility steam generating units that convert coal refuse into energy. 1. Short title This Act may be cited as the Satisfying Energy Needs and Saving the Environment Act SENSE Act 2. Standards for coal refuse power plants (a) Definitions In this Act: (1) Administrator The term Administrator (2) Boiler operating day The term boiler operating day (3) Coal refuse The term coal refuse (4) Coal refuse electric utility steam generating unit The term coal refuse electric utility steam generating unit (A) is in operation as of the date of enactment of this Act; (B) uses fluidized bed combustion technology to convert coal refuse into energy; and (C) uses coal refuse as at least 75 percent of the annual fuel consumed, by heat input, of the unit. (5) Coal refuse-fired facility The term coal refuse-fired facility (A) located on one or more contiguous or adjacent properties; (B) specified within the same Major Group (2-digit code), as described in the Standard Industrial Classification Manual (1987); and (C) under common control of the same person (or persons under common control). (6) Cross-State Air Pollution Rule The terms Cross-State Air Pollution Rule CSAPR (7) Electric utility steam generating unit The term electric utility steam generating unit (A) an electric utility steam generating unit, as such term is defined in section 63.10042 of title 40, Code of Federal Regulations, or any successor regulation; or (B) an electricity generating unit or electric generating unit, as such terms are used in CSAPR. (8) Phase I The term Phase I (b) Application of CSAPR to certain coal refuse electric utility steam generating units (1) Coal refuse electric utility steam generating units combusting bituminous coal refuse (A) Applicability This paragraph applies with respect to any coal refuse electric utility steam generating unit that— (i) combusts coal refuse derived from the mining and processing of bituminous coal; and (ii) is subject to sulfur dioxide allowance surrender provisions pursuant to CSAPR. (B) Continued applicability of Phase I allowance allocations In carrying out CSAPR, the Administrator shall provide that, for any compliance period, the allocation (whether through a Federal implementation plan or State implementation plan) of sulfur dioxide allowances for a coal refuse electric utility steam generating unit described in subparagraph (A) is equivalent to the allocation of the unit-specific sulfur dioxide allowance allocation identified for such unit for Phase I, as referenced in the notice entitled Availability of Data on Allocations of Cross-State Air Pollution Rule Allowances to Existing Electricity Generating Units (C) Rules for allowance allocations For any compliance period under CSAPR that commences on or after January 1, 2017, any sulfur dioxide allowance allocation provided by the Administrator to a coal refuse electric utility steam generating unit described in subparagraph (A)— (i) shall not be transferable for use by any other source not located at the same coal refuse-fired facility as the relevant coal refuse electric utility steam generating unit; (ii) may be transferable for use by another source located at the same coal refuse-fired facility as the relevant coal refuse electric utility steam generating unit; (iii) may be banked for application to compliance obligations in future compliance periods under CSAPR; and (iv) shall be surrendered upon the permanent cessation of operation of such coal refuse electric utility steam generating unit. (2) Other sources (A) No increase in overall State budget of sulfur dioxide allowance allocations For purposes of paragraph (1), the Administrator may not, for any compliance period under CSAPR, increase the total budget of sulfur dioxide allowance allocations for a State in which a unit described in paragraph (1)(A) is located. (B) Compliance periods 2017 through 2020 For any compliance period under CSAPR that commences on or after January 1, 2017, but before December 31, 2020, the Administrator shall carry out subparagraph (A) by proportionally reducing, as necessary, the unit-specific sulfur dioxide allowance allocations from each source that— (i) is located in a State in which a unit described in paragraph (1)(A) is located; (ii) permanently ceases operation, or converts its primary fuel source from coal to natural gas, prior to the relevant compliance period; and (iii) otherwise receives an allocation of sulfur dioxide allowances under CSAPR for such period. (c) Emission limitations To address hydrogen chloride and sulfur dioxide as hazardous air pollutants (1) Applicability For purposes of regulating emissions of hydrogen chloride or sulfur dioxide from a coal refuse electric utility steam generating unit under section 112 of the Clean Air Act ( 42 U.S.C. 7412 (A) shall authorize the operator of such unit to elect that such unit comply with either— (i) an emissions standard for emissions of hydrogen chloride that meets the requirements of paragraph (2); or (ii) an emission standard for emissions of sulfur dioxide that meets the requirements of paragraph (2); and (B) may not require that such unit comply with both an emission standard for emissions of hydrogen chloride and an emission standard for emissions of sulfur dioxide. (2) Rules for emission limitations (A) In general The Administrator shall require an operator of a coal refuse electric utility steam generating unit to comply, at the election of the operator, with no more than one of the following emission standards: (i) An emission standard for emissions of hydrogen chloride from such unit that is no more stringent than an emission rate of 0.002 pounds per million British thermal units of heat input. (ii) An emission standard for emissions of hydrogen chloride from such unit that is no more stringent than an emission rate of 0.02 pounds per megawatt-hour. (iii) An emission standard for emissions of sulfur dioxide from such unit that is no more stringent than an emission rate of 0.20 pounds per million British thermal units of heat input. (iv) An emission standard for emissions of sulfur dioxide from such unit that is no more stringent than an emission rate of 1.5 pounds per megawatt-hour. (v) An emission standard for emissions of sulfur dioxide from such unit that is no more stringent than capture and control of 93 percent of sulfur dioxide across the generating unit or group of generating units, as determined by comparing— (I) the expected sulfur dioxide generated from combustion of fuels emissions calculated based upon as-fired fuel samples; to (II) the actual sulfur dioxide emissions as measured by a sulfur dioxide continuous emission monitoring system. (B) Measurement An emission standard described in subparagraph (A) shall be measured as a 30 boiler operating day rolling average per coal refuse electric utility steam generating unit or group of coal refuse electric utility steam generating units located at a single coal refuse-fired facility. March 7, 2016 Committed to the Committee of the Whole House on the State of the Union and ordered to be printed

Summary: Satisfying Energy Needs and Saving the Environment Act or the SENSE Act (Sec. 2) This bill modifies the Cross-State Air Pollution Rule as it applies to certain electric utility steam generating units (electric power plants) that convert coal refuse into energy. The Environmental Protection Agency (EPA) must maintain the existing limits for sulfur dioxide emissions from coal refuse utilities under the cap-and-trade system, instead of applying the more restrictive limits that are scheduled to go into effect in 2017. (Under the current system, a cap sets a limit on emissions. The cap is lowered over time to reduce the amount of pollutants released. Utilities may only emit as much carbon as permitted under their allowances, which may be traded with others.) Thus, the EPA must allocate to coal refuse utilities in 2017 and subsequent years the same number of emissions allowances for sulfur dioxide that have been previously allocated to coal refuse utilities, instead of reducing allowances. After January 1, 2017, a coal refuse utility may not trade any unused sulfur dioxide allowances. Those allowances may be saved by the coal refuse utilities for use in future compliance periods. The EPA may not increase the total number of allowances for sulfur dioxide emissions from all sources that are allocated to each state. The bill eases emission limits for hazardous air pollutants from coal refuse utilities. The EPA must allow the utilities to meet compliance requirements by meeting the maximum achievable control technology standards for either hydrogen chloride or sulfur dioxide.