‘‘(B) a nuclear generating unit with re-
spect to incremental nuclear generation; and 
‘‘(C) a renewable energy unit. 
‘‘(4) GREENHOUSE GAS.—The term ‘greenhouse 
gas’ means— 
‘‘(A) carbon dioxide; 
‘‘(B) methane; 
‘‘(C) nitrous oxide; 
‘‘(D) hydrofluorocarbons; 
‘‘(E) perfluorocarbons; and 
‘‘(F) sulfur hexafluoride. 
‘‘(5) INCREMENTAL NUCLEAR GENERATION.— 
The term ‘incremental nuclear generation’ means 
the difference between— 
‘‘(A) the quantity of electricity generated 
by a nuclear generating unit in a calendar year; 
and 
‘‘(B) the quantity of electricity generated 
by the nuclear generating unit in calendar year 
1990; 
as determined by the Administrator and measured in 
megawatt hours. 
‘‘(6) MERCURY ALLOWANCE.—The term ‘mer-
cury allowance’ means an authorization allocated by
the Administrator under this title to emit 1 pound 
of mercury during or after a specified calendar year. 
‘‘(7) NEW
RENEWABLE
ENERGY
UNIT.—The 
term ‘new renewable energy unit’ means a renewable 
energy unit that has operated for a period of not 
more than 3 years. 
‘‘(8) NEW UNIT.—The term ‘new unit’ means 
an affected unit that has operated for not more than 
3 years and is not eligible to receive— 
‘‘(A) sulfur dioxide allowances under sec-
tion 417(b); 
‘‘(B) nitrogen oxide allowances or mercury 
allowances under section 703(c)(2); or 
‘‘(C) carbon dioxide allowances under sec-
tion 704(c)(2). 
‘‘(9) NITROGEN OXIDE ALLOWANCE.—The term 
‘nitrogen oxide allowance’ means an authorization 
allocated by the Administrator under this title to 
emit 1 ton of nitrogen oxides during or after a speci-
fied calendar year. 
‘‘(10) NUCLEAR GENERATING UNIT.—The term 
‘nuclear generating unit’ means an electric gener-
ating facility that— 
‘‘(A) uses nuclear energy to supply elec-
tricity to the electric power grid; and
‘‘(B) commenced operation in calendar 
year 1990 or earlier. 
‘‘(11) RENEWABLE ENERGY.—The term ‘renew-
able energy’ means electricity generated from— 
‘‘(A) wind; 
‘‘(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. 
‘‘(12) RENEWABLE ENERGY UNIT.—The term 
‘renewable energy unit’ means an electric generating 
facility that uses exclusively renewable energy to 
supply electricity to the electric power grid. 
‘‘(13) SEQUESTRATION.—The term ‘sequestra-
tion’ means the action of sequestering carbon by— 
‘‘(A) enhancing a natural carbon sink 
(such as through afforestation); or 
‘‘(B) (i) capturing the carbon dioxide emit-
ted from a fossil fuel-based energy system; and
‘‘(ii) (I) storing the carbon in a geologic 
formation or in a deep area of an ocean; or 
‘‘(II) converting the carbon to a benign 
solid material through a biological or chemical 
process. 
‘‘(14) SULFUR
DIOXIDE
ALLOWANCE.—The 
term ‘sulfur dioxide allowance’ has the meaning 
given the term ‘allowance’ in section 402. 
‘‘SEC. 702. NATIONAL POLLUTANT TONNAGE LIMITATIONS. 
‘‘(a) SULFUR DIOXIDE.—The annual tonnage limita-
tion for emissions of sulfur dioxide from affected units in 
the United States shall be equal to— 
‘‘(1) for each of calendar years 2010 through 
2013, 4,500,000 tons; 
‘‘(2) for each of calendar years 2014 through 
2016, 3,500,000 tons; and 
‘‘(3) for calendar year 2017 and each calendar 
year thereafter, 2,250,000 tons. 
‘‘(b) NITROGEN OXIDES.—The annual tonnage limi-
tation for emissions of nitrogen oxides from affected units 
in the United States shall be equal to— 
‘‘(1) for each of calendar years 2009 through 
2014, 1,870,000 tons; and 
‘‘(2) for calendar year 2015 and each calendar 
year thereafter, 1,700,000 tons.
‘‘(c) MERCURY.— 
‘‘(1) IN GENERAL.—The annual tonnage limita-
tion for emissions of mercury from affected units in 
the United States shall be equal to the following: 
‘‘(A) For each of calendar years 2010 
through 2014, 24 tons. 
‘‘(B) For calendar year 2015 and each cal-
endar year thereafter, 10 tons. 
‘‘(2) MAXIMUM EMISSIONS OF MERCURY FROM 
EACH AFFECTED UNIT.— 
‘‘(A) CALENDAR
YEARS
2010
THROUGH 
2014.—For each of calendar years 2010 through 
2014, the emissions of mercury from each af-
fected unit shall not exceed either, at the option 
of the operator of the affected unit— 
‘‘(i) 50 percent of the total quantity 
of mercury present in the coal delivered to 
the affected unit in the calendar year; or 
‘‘(ii) an annual output-based emission 
rate for mercury that shall be determined 
by the Administrator based on an input- 
based rate of 4 pounds per trillion British 
thermal units. 
‘‘(B) CALENDAR YEAR 2015 AND THERE-
AFTER.—For calendar year 2015 and each cal-
endar year thereafter, the emissions of mercury 
from each affected unit shall not exceed— 
‘‘(i) 30 percent of the total quantity 
of mercury present in the coal delivered to 
the affected unit in the calendar year; or 
‘‘(ii) an annual output-based emission 
rate for mercury that shall be determined 
by the Administrator. 
‘‘(d) CARBON DIOXIDE.—Subject to section 704(d), 
the annual tonnage limitation for emissions of carbon di-
oxide from covered units in the United States shall be 
equal to— 
‘‘(1) for each of calendar years 2010 through 
2014, the quantity of emissions project to be emitted 
from affected units in calendar year 2006, as deter-
mined by the Energy Information Administration of 
the Department of Energy based on the projections 
of the Administration the publication of which most 
closely precedes the date of enactment of this title; 
and 
‘‘(2) for calendar year 2015 and each calendar 
year thereafter, the quantity of emissions emitted 
from affected units in calendar year 2001, as deter-
mined by the Energy Information Administration of 
the Department of Energy.
‘‘(e) REVIEW OF ANNUAL TONNAGE LIMITATIONS.— 
‘‘(1) PERIOD OF EFFECTIVENESS.—The annual 
tonnage limitations established under subsections (a) 
through (d) shall remain in effect until the date that 
is 20 years after the date of enactment of this title. 
‘‘(2) DETERMINATION
BY
ADMINISTRATOR.— 
Not later than 15 years after the date of enactment 
of this title, the Administrator, after considering im-
pacts on human health, the environment, the econ-
omy, and costs, shall determine whether 1 or more 
of the annual tonnage limitations should be revised. 
‘‘(3) DETERMINATION NOT TO REVISE.—If the 
Administrator determines under paragraph (2) that 
none of the annual tonnage limitations should be re-
vised, the Administrator shall publish in the Federal 
Register a notice of the determination and the rea-
sons for the determination. 
‘‘(4) DETERMINATION TO REVISE.— 
‘‘(A) IN GENERAL.—If the Administrator 
determines under paragraph (2) that 1 or more 
of the annual tonnage limitations should be re-
vised, the Administrator shall publish in the 
Federal Register— 
‘‘(i) not later than 15 years and 180 
days after the date of enactment of this
title, proposed regulations implementing 
the revisions; and 
‘‘(ii) not later than 16 years and 180 
days after the date of enactment of this 
title, final regulations implementing the re-
visions. 
‘‘(B) EFFECTIVE DATE OF REVISIONS.— 
Any revisions to the annual tonnage limitations 
under subparagraph (A) shall take effect on the 
date that is 20 years after the date of enact-
ment of this title. 
‘‘(f) REDUCTION OF EMISSIONS FROM SPECIFIED 
AFFECTED UNITS.—Subject to the requirements of this 
Act concerning national ambient air quality standards es-
tablished under part A of title I, notwithstanding the an-
nual tonnage limitations established under this section, 
the Federal Government or a State government may re-
quire that emissions from a specified affected unit be re-
duced to address a local air quality problem. 
‘‘SEC. 703. NITROGEN OXIDE AND MERCURY ALLOWANCE 
TRADING PROGRAMS. 
‘‘(a) REGULATIONS.— 
‘‘(1) PROMULGATION.— 
‘‘(A) IN
GENERAL.—Not later than 180 
days after enactment of this section, the Ad-
ministrator shall promulgate regulations to es-
tablish for affected units in the United States— 
‘‘(i) a nitrogen oxide allowance trad-
ing program; and 
‘‘(ii) a mercury allowance trading pro-
gram. 
‘‘(B) REQUIREMENTS.—Regulations pro-
mulgated under subparagraph (A) shall estab-
lish requirements for the allowance trading pro-
grams under this section, including require-
ments concerning— 
‘‘(i)(I) 
the 
generation, 
allocation, 
issuance, recording, tracking, transfer, and 
use of nitrogen oxide allowances and mer-
cury allowances; and 
‘‘(II) the public availability of all in-
formation concerning the activities de-
scribed in subclause (I) that is not con-
fidential; 
‘‘(ii) 
compliance 
with 
subsection 
(e)(1); 
‘‘(iii) the monitoring and reporting of 
emissions under paragraphs (2) and (3) of 
subsection (e); and
‘‘(iv) excess emission penalties under 
subsection (e)(4). 
‘‘(2) MIXED FUEL, CO-GENERATION FACILITIES 
AND
COMBINED
HEAT
AND
POWER
FACILITIES.— 
The Administrator shall promulgate such regulations 
as are necessary to ensure the equitable issuance of 
allowances to— 
‘‘(A) facilities that use more than 1 energy 
source to produce electricity; and 
‘‘(B) facilities that produce electricity in 
addition to another service or product. 
‘‘(3) REPORT TO CONGRESS ON USE OF CAP-
TURED OR RECOVERED MERCURY.— 
‘‘(A) IN
GENERAL.—Not later than 18 
months after the date of enactment of this title, 
the Administrator shall submit to Congress a 
report on the public health and environmental 
impacts from mercury that is or may be— 
‘‘(i) captured or recovered by air pol-
lution control technology; and 
‘‘(ii) incorporated into products such 
as soil amendments and cement. 
‘‘(B) REQUIRED ELEMENTS.—The report 
shall— 
‘‘(i) review—