I 
110TH CONGRESS 
1ST SESSION H. R. 3989 
To amend the Clean Air Act to reduce mercury, carbon dioxide, sulfur 
dioxide, and nitrogen oxide emissions, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 29, 2007 
Mr. MCHUGH introduced the following bill; which was referred to the Com-
mittee on Energy and Commerce, and in addition to the Committees on 
Natural Resources, Science and Technology, and Agriculture, for a period 
to be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee 
concerned 
A BILL 
To amend the Clean Air Act to reduce mercury, carbon 
dioxide, sulfur dioxide, and nitrogen oxide emissions, and 
for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 
This Act may be cited as the ‘‘Healthy Air and Clean 
Water Act’’. 
TITLE I—MERCURY AND CARBON DIOXIDE EMISSION 
REDUCTIONS 
Sec. 101. Findings and purposes. 
Sec. 102. Mercury and carbon dioxide emissions reductions. 
Sec. 103. Protecting sensitive regional ecosystems. 
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Sec. 104. Authorization of appropriations. 
Sec. 105. Modernization. 
TITLE II—SULFUR DIOXIDE AND NITROGEN OXIDE EMISSIONS 
Sec. 201. Reduction of emissions from powerplants. 
TITLE I—MERCURY AND CAR-
BON DIOXIDE EMISSION RE-
DUCTIONS 
SEC. 101. FINDINGS AND PURPOSES. 
(a) FINDINGS.—Congress finds that— 
(1) fossil fuel-fired electric generating units 
emit approximately 1⁄3 of the total mercury and car-
bon dioxide emission in the United States; 
(2) the Environmental Protection Agency has 
yet to adequately address the emissions of either 
mercury or carbon dioxide; 
(3) owners of electric generating units seek reg-
ulatory certainty when complying with environmental 
standards; and 
(4) many states have already taken action, ei-
ther by themselves or in partnerships, to reduce 
their emissions of mercury and carbon dioxide. 
(b) PURPOSES.—The purposes of this Act are— 
(1) to protect the quality of our Nation’s air 
and water quality by substantially reducing the 
emissions from fossil fuel-fired electric generating 
units; 
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(2) to reduce the impact of climate change by 
limiting emissions of carbon dioxide; 
(3) to enhance human and wildlife health by 
limiting emissions of mercury; and 
(4) to develop and promote sources of clean en-
ergy that do not require the burning of fossil fuels. 
SEC. 102. MERCURY AND CARBON DIOXIDE EMISSIONS RE-
DUCTIONS. 
The Clean Air Act (42 U.S.C. 7401 et seq.) is amend-
ed by adding at the end the following: 
‘‘TITLE VII—MERCURY AND 
CARBON DIOXIDE REDUCTIONS 
‘‘Sec. 701. Definitions. 
‘‘Sec. 702. Mercury reduction program. 
‘‘Sec. 703. Carbon dioxide trading program. 
‘‘Sec. 704. Prohibitions. 
‘‘Sec. 705. Effect on other law. 
‘‘SEC. 701. DEFINITIONS. 
‘‘In this title: 
‘‘(1) AFFECTED
UNIT.—The term ‘affected 
unit’ means a coal-fired electric generating facility 
(including a cogeneration facility) that— 
‘‘(A) has a nameplate capacity greater 
than 25 megawatts; and 
‘‘(B) generates electricity for sale. 
‘‘(2) COGENERATION FACILITY.—The term ‘co-
generation facility’ means a facility that— 
‘‘(A) cogenerates— 
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‘‘(i) steam; and 
‘‘(ii) electricity; and 
‘‘(B) supplies, on a net annual basis, to 
any utility power distribution system for sale— 
‘‘(i) more than 1⁄3 of the potential 
electric output capacity of the facility; and 
‘‘(ii) more than 25 megawatts of elec-
trical output of the facility. 
‘‘SEC. 702. MERCURY REDUCTION PROGRAM. 
‘‘(a) NEW UNIT REQUIREMENT.—Any affected unit 
that commences operation after December 31, 2008, shall 
be considered a new unit for the purposes of this section 
and shall not exceed the emission limit of 0.6 pounds mer-
cury per trillion Btu (0.6 lb Hg/TBtu) upon commence-
ment of operation. 
‘‘(b) EXISTING UNIT REQUIREMENT.—Any affected 
unit that commences operation on or before December 31, 
2008, shall not exceed the emission limit of 0.6 pounds 
mercury per trillion Btu by January 1, 2011. 
‘‘(c) MONITORING SYSTEM.—Not later than January 
1, 2009, the Administrator shall promulgate regulations 
requiring operation, reporting and certification of contin-
uous emissions monitoring systems (CEMS) to accurately 
measure the quantity of mercury that is emitted from each 
affected unit. 
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‘‘(d) EXCESS EMISSIONS.— 
‘‘(1) IN GENERAL.—The owner or operator of 
an affected unit that emits mercury in excess of the 
emission limitation described in subsections (b) and 
(c) shall pay an excess emissions penalty determined 
under paragraph (2). 
‘‘(2) DETERMINATION
OF
EXCESS
EMISSIONS 
PENALTY.—The excess emissions penalty shall be an 
amount equal to $10,000 for each ounce of mercury 
emitted in excess of the emission limitations for mer-
cury described in subsections (b) and (c). 
‘‘(e) PREVENTION OF MERCURY RE-RELEASE.—Not 
later than January 1, 2009, the Administrator shall pro-
mulgate regulations to ensure that any mercury captured 
or recovered by emission controls installed at an affected 
unit is not re-released into the environment. 
‘‘SEC. 703. CARBON DIOXIDE TRADING PROGRAM. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) ALLOWANCE.—The term ‘allowance’ mean 
a carbon dioxide allowance equivalent to emitting 
one ton of carbon dioxide during the year that it was 
issued or any subsequent year. 
‘‘(2) RENEWABLE ENERGY.—The term ‘renew-
able energy’ means electricity generated from— 
‘‘(A) wind; 
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‘‘(B) organic waste (excluding incinerated 
municipal solid waste); 
‘‘(C) biomass (including anaerobic diges-
tion from farm systems and landfill gas recov-
ery); 
‘‘(D) fuel cells; or 
‘‘(E) a hydroelectric, geothermal, solar 
thermal, photovoltaic, or other nonfossil fuel, 
nonnuclear source. 
‘‘(b) CARBON DIOXIDE EMISSION LEVELS FOR 2015, 
2020, 2030, 2040, AND 2050.— 
‘‘(1) By January 1, 2015, carbon dioxide emis-
sion levels for affected units shall not exceed the 
level of carbon dioxide emissions for affected units in 
2005. 
‘‘(2) By January 1, 2020, carbon dioxide emis-
sion levels for affected units shall not exceed 75 per-
cent of the level of carbon dioxide emissions for af-
fected units in 2005. 
‘‘(3) By January 1, 2030, carbon dioxide emis-
sion levels for affected units shall not exceed 50 per-
cent of the level of carbon dioxide emissions for af-
fected units in 2005. 
‘‘(4) By January 1, 2040, carbon dioxide emis-
sion levels for affected units shall not exceed 35 per-
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cent of the level of carbon dioxide emissions for af-
fected units in 2005. 
‘‘(5) By January 1, 2050, carbon dioxide emis-
sion levels for affected units shall not exceed 20 per-
cent of the level of carbon dioxide emissions for af-
fected units in 2005. 
‘‘(c) REGULATIONS.— 
‘‘(1) IN GENERAL.—Not later than January 1, 
2010, the Administrator shall promulgate regula-
tions to establish an allowance trading program for 
affected units in the United States. 
‘‘(2) REQUIRED ELEMENTS.—Regulations pro-
mulgated under paragraph (1) shall establish re-
quirements for the carbon dioxide allowance trading 
program under this section, including requirements 
concerning— 
‘‘(A) the issuance, auction, and use of car-
bon dioxide allowances. Such allowances shall 
be— 
‘‘(i) 100 percent auctioned; and 
‘‘(ii) the proceeds of such auction 
shall be deposited into a special fund joint-
ly administered by the Department of En-
ergy and Environmental Protection Agency 
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to fund research and development of re-
newable energy projects. 
‘‘(B) the transfer of allowances; 
‘‘(C) the monitoring, tracking and report-
ing of carbon dioxide allowances; and 
‘‘(d) COMPLIANCE AND ENFORCEMENT.— 
‘‘(1) IN
GENERAL.—For calendar year 2015 
and each calendar year thereafter, the owner of each 
affected unit shall surrender to the Administrator a 
quantity of allowances that is equal to the total tons 
of carbon dioxide emitted by the affected unit during 
the calendar year. 
‘‘(2) PENALTY.—The owner of an affected unit 
that emits carbon dioxide in excess of the allowances 
that the owner holds for use for the affected unit for 
the calendar year shall pay an excess emissions pen-
alty equal to the product obtained by multiplying— 
‘‘(A) the number of tons of carbon dioxide 
emitted inexcess of the total quantity of allow-
ances held; and 
‘‘(B) $150, adjusted for changes in the 
Consumer Price Index for All-Urban Consumers 
published by the Department of Labor. 
‘‘(e) ALLOWANCE NOT A PROPERTY RIGHT.—An al-
lowance— 
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‘‘(1) is not a property right; and 
‘‘(2) may be terminated or limited by the Ad-
ministrator. 
‘‘(f) NO JUDICIAL REVIEW.—An auction or issuance 
of an allowance by the Administrator shall not be subject 
to judicial review. 
‘‘SEC. 704. PROHIBITIONS. 
‘‘It shall be unlawful— 
‘‘(1) for the owner or operator of any electricity 
generating facility— 
‘‘(A) to operate the electricity generating 
facility in noncompliance with the requirements 
of this title (including any regulations imple-
menting 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; 
‘‘(C) to fail to provide and comply with any 
plan to offset excess emissions; or 
‘‘(D) to emit mercury in excess of the 
emission limitations established under section 
702; or 
‘‘(2) for any person to hold, use, or transfer 
any emission allowance allocated under this title ex-
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cept in accordance with regulations promulgated by 
the Administrator. 
‘‘SEC. 705. EFFECT ON OTHER LAW. 
‘‘Nothing in this title— 
‘‘(1) affects the ability of a State to take State 
actions to further limit climate change (except that 
section 209 shall apply to standards for vehicles); 
and 
‘‘(2) except as expressly provided in this title— 
‘‘(A) modifies or otherwise affects any re-
quirement of this Act in effect on the day be-
fore the date of enactment of this title; or 
‘‘(B) relieves any person of the responsi-
bility to comply with this Act.’’. 
SEC. 103. PROTECTING SENSITIVE REGIONAL ECOSYSTEMS. 
(a) REPORT.— 
(1) IN GENERAL.—Not later than December 31, 
2010, the Administrator shall submit to Congress a 
report identifying objectives for scientifically credible 
environmental indicators, as determined by the Ad-
ministrator, that are sufficient to protect and restore 
sensitive ecosystems of the Adirondack Mountains, 
mid-Appalachian Mountains, Catskill Mountains, 
Rocky Mountains, and Southern Blue Ridge Moun-
tains and water bodies of the Great Lakes, Lake 
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Champlain, Long Island Sound, the Chesapeake Bay 
and other sensitive ecosystems, as determined by the 
Administrator. 
(2) UPDATED REPORT.—Not later than Decem-
ber 31, 2019, the Administrator shall submit to 
Congress a report updating the report under para-
graph (1) and assessing the status and trends of 
various environmental objectives and indicators for 
the sensitive regional ecosystems referred to in para-
graph (1). 
(3) REPORTS UNDER THE NATIONAL ACID PRE-
CIPITATION
ASSESSMENT
PROGRAM.—The reports 
under this subsection shall be subject to the require-
ments 
applicable 
to 
a 
report 
under 
section 
103(j)(3)(E) of the Clean Air Act (42 U.S.C. 
7403(j)(3)(E)). 
(b) REGULATIONS.— 
(1) DETERMINATION.—Not later than Decem-
ber 31, 2019, the Administrator shall determine 
whether emissions reductions under title VII of the 
Clean Air Act are sufficient to ensure achievement 
of the objectives stated in subsection (a)(1). 
(2) PROMULGATION.—If the Administrator de-
termines under paragraph (1) that emissions reduc-
tions under title VII of the Clean Air Act are not 
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sufficient to ensure achievement of the objectives 
identified in subsection (a)(1), the Administrator 
shall promulgate, not later than 2 years after mak-
ing the finding, such regulations, including modifica-
tion of nitrogen oxide and sulfur dioxide allowance 
allocations or any such measure, as the Adminis-
trator determines are necessary to protect the sen-
sitive ecosystems described in subsection (a)(1). 
SEC. 104. AUTHORIZATION OF APPROPRIATIONS. 
In addition to amounts made available under any 
other law, there are authorized to be appropriated for each 
of fiscal years 2008 through 2018— 
(1) for operational support of the National At-
mospheric Deposition Program National Trends 
Network— 
(A) $2,000,000 to the United States Geo-
logical Survey; 
(B) $600,000 to the Environmental Pro-
tection Agency; 
(C) $600,000 to the National Park Serv-
ice; and 
(D) $400,000 to the Forest Service; 
(2) for operational support of the National At-
mospheric Deposition Program Mercury Deposition 
Network— 
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(A) $400,000 to the Environmental Pro-
tection Agency; 
(B) $400,000 to the United States Geo-
logical Survey; 
(C) $100,000 to the National Oceanic and 
Atmospheric Administration; and 
(D) $100,000 to the National Park Serv-
ice; 
(3) for the National Atmospheric Deposition 
Program Atmospheric Integrated Research Moni-
toring Network $1,500,000 to the National Oceanic 
and Atmospheric Administration; 
(4) for the Clean Air Status and Trends Net-
work $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. 
SEC. 105. MODERNIZATION. 
(a) AUTHORIZATION OF APPROPRIATIONS.—In addi-
tion 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 
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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 Re-
search Monitoring Network $1,000,000 to the Na-
tional 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. 
(b) AVAILABILITY
OF
AMOUNTS.—Each of the 
amounts appropriated under subsection (b) shall remain 
available until expended. 
TITLE II—SULFUR DIOXIDE AND 
NITROGEN OXIDE EMISSIONS 
SEC. 201. REDUCTION OF EMISSIONS FROM POWERPLANTS. 
Part A of title I of the Clean Air Act (42 U.S.C. 7401 
et seq.) is amended by adding at the end the following: 
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‘‘SEC. 132. REDUCTION OF EMISSIONS FROM POWER-
PLANTS. 
‘‘(a) EMISSION REDUCTION OBJECTIVES.—The emis-
sion reduction objectives of this section are to reduce, not 
later than January 1, 2010: 
‘‘(1) aggregate sulfur dioxide emissions from 
powerplants by 75 percent from the levels allowed 
under full implementation of the Phase II sulfur di-
oxide requirements under title IV (relating to acid 
deposition control); and 
‘‘(2) aggregate nitrogen oxide emissions from 
powerplants by 75 percent from 1997 levels. 
‘‘(b) AGENCY ACTION.— 
‘‘(1) REGULATIONS.— 
‘‘(A) IN GENERAL.—Not later than 2 years 
after the date of enactment of this section, the 
Administrator shall promulgate regulations to 
achieve the emission reduction objectives speci-
fied in subsection (a). 
‘‘(B) ELEMENTS.—The regulations pro-
mulgated under subparagraph (A)— 
‘‘(i) shall achieve the objectives in a 
manner that the Administrator determines 
will allocate required emission reductions 
equitably, taking into account emission re-
ductions achieved before the date of enact-
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to implement cost saving advanced demand and sup-
ply side policies, such as those described in the re-
port prepared by the Interlaboratory Working Group 
of the Department of Energy entitled ‘Scenarios for 
a Clean Energy Future’, dated November 2000. 
‘‘(c) ADDITIONAL REDUCTIONS.—The regulations 
promulgated under subsection (b) may require additional 
reductions in emissions from powerplants if the Adminis-
trator determines that the emission levels necessary to 
achieve the emission reduction objectives specified in sub-
section (a) are not reasonably anticipated to protect public 
health or welfare. 
‘‘(d) MODERNIZATION
OF
OUTDATED
POWER-
PLANTS.— 
‘‘(1) IN GENERAL.—On the later of the date 
that is 30 years after a powerplant commenced oper-
ation or the date that is 5 years after the date of 
enactment of this section, it shall comply with— 
‘‘(A) the most recent new source perform-
ance standards promulgated under section 111; 
and 
‘‘(B) the requirements under parts C and 
D that are applicable to modified sources. 
‘‘(2) ADDITIONAL
REQUIREMENTS.—The re-
quirements of this subsection shall be in addition to 
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the requirements of the regulations promulgated 
under subsection (b). 
‘‘(e) OTHER REQUIREMENTS.—The requirements of 
this section shall be in addition to, and not in lieu of, any 
other requirement of this Act. 
‘‘(f) DEFINITION.—In this section, the term ‘power-
plant’ means an electric generation facility with a name-
plate capacity of 25 megawatts or more that uses a com-
bustion device to generate electricity for sale.’’. 
Æ 
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