169
busting coal or any coal-derived fuel alone or in com-
bination with any amount of any other fuel in any 
year during the period from the eighth through the 
fourth year before the first covered year. 
‘‘(4) The term ‘covered year’ means—
‘‘(A)(i) the third year after the year 2018 
or later when the total annual sulfur dioxide 
emissions of all affected EGUs in the WRAP 
States first exceed 271,000 tons; or 
‘‘(ii) the third year after the year 2013 or 
later when the Administrator determines by 
regulation that the total annual sulfur dioxide 
emissions of all affected EGUs in the WRAP 
States are reasonably projected to exceed 
271,000 tons in 2018 or any year thereafter. 
The Administrator may make such determina-
tion only if all the WRAP States submit to the 
Administrator a petition requesting that the 
Administrator issue such determination and 
make all affected EGUs in the WRAP States 
subject to the requirements of sections 432 
through 434; and 
‘‘(B) each year after the ‘covered year’ 
under subparagraph (A).
170
‘‘(5) The term ‘oil-fired’ with regard to a unit 
means, for purposes of section 434, a unit com-
busting fuel oil for more than 10 percent of the 
unit’s total heat input, and combusting no coal or 
coal-derived fuel, and any year during the period 
from the eighth through the fourth year before the 
first covered year. 
‘‘(6) The term ‘WRAP State’ means Arizona, 
California, Colorado, Idaho, Nevada, New Mexico, 
Oregon, Utah, and Wyoming. 
‘‘SEC. 432. APPLICABILITY. 
‘‘(a) PROHIBITION.—Starting January 1 of the first 
covered year, it shall be unlawful for the affected EGUs 
at a facility to emit a total amount of sulfur dioxide during 
the year in excess of the number of sulfur dioxide allow-
ances held for such facility for that year by the owner or 
operator of the facility. 
‘‘(b) ALLOWANCES HELD.—Only sulfur dioxide al-
lowances under section 433 shall be held in order to meet 
the requirements of subsection (a). 
‘‘SEC. 433. LIMITATIONS ON TOTAL EMISSIONS. 
‘‘For affected EGUs, the total amount of sulfur diox-
ide allowances that the Administrator shall allocate for 
each covered year under section 434 shall equal 271,000 
tons.
171
‘‘SEC. 434. EGU ALLOCATIONS. 
‘‘(a) IN GENERAL.—By January 1 of the year before 
the first covered year, the Administrator shall promulgate 
regulations determining, for each covered year, the alloca-
tions of sulfur dioxide allowances for the units at a facility 
that are affected EGUs as of December 31 of the fourth 
year before the covered year by—
‘‘(1) for such units at the facility that are coal-
fired, multiplying 0.40 lb/mmBtu by the total ad-
justed baseline heat input of such units and con-
verting to tons; 
‘‘(2) for such units at the facility that are oil-
fired, multiplying 0.20 lb/mmBtu by the total ad-
justed baseline heat input of such units and con-
verting to tons; 
‘‘(3) for all such other units at the facility that 
are not covered by paragraph (1) or (2) multiplying 
0.05 lb/mmBtu by the total adjusted baseline heat 
input of such units and converting to tons; and 
‘‘(4) multiplying the allocation amount under 
section 433 by the ratio of the total of the amounts 
for the facility under paragraphs (1), (2), and (3) to 
the total of the amounts for all facilities under para-
graphs (1), (2), and (3). 
‘‘(b) FAILURE TO PROMULGATE.—(1) For each cov-
ered year, if, by the date 18 months before January 1 of
172
such year, the Administrator has signed proposed regula-
tions but has not promulgated final regulations deter-
mining allocations under paragraph (a), then the Adminis-
trator shall allocate, for such year, for each facility where 
an affected EGU is located the amount of sulfur dioxide 
allowances specified for that facility in such proposed reg-
ulations. 
‘‘(2) For each covered year, if, by the date 18 months 
before January 1 of such year, the Administrator has not 
signed proposed regulations determining allocations under 
subsection (a), the Administrator shall—
‘‘(A) determine, for such year, for each affected 
EGU with coal as its primary or secondary fuel or 
residual oil as its primary fuel listed in the Adminis-
trator’s Emissions Scorecard 2001, Appendix B, 
Table B1 an amount of sulfur dioxide allowances by 
multiplying 95 percent of the allocation amount 
under section 433 by the ratio of such unit’s heat 
input in the Emissions Scorecard 2001, Appendix B, 
Table B1 to the total of the heat input in the Emis-
sions Scorecard 2001, Appendix B, Table B1 for all 
affected EGUs with coal as their primary or sec-
ondary fuel or residual oil as their primary fuel; 
‘‘(B) allocate, for such year, for each facility 
where a unit under subparagraph (A) is located the
173
total amounts of sulfur dioxide allowances for the 
units at such facility determined under subpara-
graph (A); and 
‘‘(C) auction an amount of sulfur dioxide allow-
ances equal to 5 percent of the allocation amount 
under section 433 and conduct the auction on the 
first business day in October following the respective 
promulgation deadline under paragraph (1) and in 
accordance with section 409. 
‘‘PART C—NITROGEN OXIDES CLEAR SKIES 
EMISSION REDUCTIONS 
‘‘Subpart 1—Acid Rain Program 
‘‘SEC. 441. NITROGEN OXIDES EMISSION REDUCTION PRO-
GRAM. 
‘‘(a) APPLICABILITY.—On the date that a coal-fired 
utility unit becomes an affected unit pursuant to sections 
413 or 414, or on the date a unit subject to the provisions 
of section 413(d), must meet the SO2 reduction require-
ments, each such unit shall become an affected unit for 
purposes of this section and shall be subject to the emis-
sion limitations for nitrogen oxides set forth herein. 
‘‘(b) EMISSION LIMITATIONS.—(1) The Adminis-
trator shall by regulation establish annual allowable emis-
sion limitations for nitrogen oxides for the types of utility 
boilers listed below, which limitations shall not exceed the
174
rates listed below: Provided, That the Administrator may 
set a rate higher than that listed for any type of utility 
boiler if the Administrator finds that the maximum listed 
rate for that boiler type cannot be achieved using low NOX 
burner technology. The Administrator shall implement 
this paragraph under 40 CFR § 76.5 (2002). The max-
imum allowable emission rates are as follows:
‘‘(A) for tangentially fired boilers, 0.45 lb/
mmBtu; and 
‘‘(B) for dry bottom wall-fired boilers (other 
than units applying cell burner technology), 0.50 lb/
mmBtu. After January 1, 1995, it shall be unlawful 
for any unit that is an affected unit on that date 
and is of the type listed in this paragraph to emit 
nitrogen oxides in excess of the emission rates set by 
the Administrator pursuant to this paragraph. 
‘‘(2) The Administrator shall, by regulation, establish 
allowable emission limitations on a lb/mmBtu, annual av-
erage basis, for nitrogen oxides for the following types of 
utility boilers: 
‘‘(A) wet bottom wall-fired boilers; 
‘‘(B) cyclones; 
‘‘(C) units applying cell burner technology; and 
‘‘(D) all other types of utility boilers.
175
The Administrator shall base such rates on the degree of 
reduction achievable through the retrofit application of the 
best system of continuous emission reduction, taking into 
account available technology, costs and energy and envi-
ronmental impacts; and which is comparable to the costs 
of nitrogen oxides controls set pursuant to subsection 
(b)(1). The Administrator may revise the applicable emis-
sion limitations for tangentially fired and dry bottom, 
wall-fired boilers (other than cell burners) to be more 
stringent if the Administrator determines that more effec-
tive low NOX burned technology is available: Provided, 
That, no unit that is an affected unit pursuant to section 
413 and that is subject to the requirements of subsection 
(b)(1), shall be subject to the revised emission limitations, 
if any. The Administrator shall implement that paragraph 
under 40 CFR §§ 76.6 and 76.7 (2002). 
‘‘(c) ALTERNATIVE
EMISSION
LIMITATIONS.—(1) 
The permitting authority shall, upon request of an owner 
or operator of a unit subject to this section, authorize an 
emission limitation less stringent than the applicable limi-
tation established under subsection (b)(1) or (b)(2) upon 
a determination that—
‘‘(A) a unit subject to subsection (b)(1) cannot 
meet the applicable limitation using low NOX burner 
technology; or
177
(B), to emit at a rate in excess of the applicable 
emission rate; 
‘‘(ii) at the conclusion of the demonstra-
tion period to revise the operating permit to re-
flect the alternative emission rate demonstrated 
in subparagraphs (B) and (C). 
‘‘(3) Units subject to subsection (b)(1) for which an 
alternative emission limitation is established shall not be 
required to install any additional control technology be-
yond low NOX burners. Nothing in this section shall pre-
clude an owner or operator from installing and operating 
an alternative NOX control technology capable of achiev-
ing the applicable emission limitation. The Administrator 
shall implement this subsection under 40 CFR part 76 
(2002), amended as appropriate by the Administrator. 
‘‘(d) EMISSIONS AVERAGING.—(1) In lieu of com-
plying with the applicable emission limitations under sub-
section (b)(1), (2), or (c), the owner or operator of two 
or more units subject to one or more of the applicable 
emission limitations set pursuant to these sections, may 
petition the permitting authority for alternative contem-
poraneous annual emission limitations for such units that 
ensure that—
‘‘(A) the actual annual emission rate in pounds 
of nitrogen oxides per million Btu averaged over the
178
units in question is a rate that is less than or equal 
to 
‘‘(B) the Btu-weighted average annual emission 
rate for the same units if they had been operated, 
during the same period of time, in compliance with 
limitations set in accordance with the applicable 
emission rates set pursuant to subsections (b)(1) 
and (2). 
‘‘(2) If the permitting authority determines, in ac-
cordance with regulations issued by the Administrator 
that the conditions in paragraph (1) can be met, the per-
mitting authority shall issue operating permits for such 
units, in accordance with section 404 and title V, that 
allow alternative contemporaneous annual emission limita-
tions. Such emission limitations shall only remain in effect 
while both units continue operation under the conditions 
specified in their respective operating permits. The Ad-
ministrator shall implement this subsection under 40 CFR 
part 76 (2002), amended as appropriate by the Adminis-
trator. 
‘‘SEC. 442. TERMINATION. 
‘‘Starting January 1, 2008, owner or operator of af-
fected units and affected facilities under section 441 shall 
no longer be subject to the requirements of that section.
179
‘‘Subpart 2—Clear Skies Nitrogen Oxides Allowance 
Program 
‘‘SEC. 451. DEFINITIONS. 
‘‘For purposes of this subpart: 
‘‘(1) The term ‘affected EGU’ means—
‘‘(A) for a unit serving a generator before 
the date of enactment of the Clear Skies Act of 
2003, a unit in a State serving a generator with 
a nameplate capacity of greater than 25 
megawatts that produced or produces electricity 
for sale during 2002 or any year thereafter, ex-
cept for a cogeneration unit that produced or 
produces electricity for sale equal to or less 
than one-third of the potential electrical output 
of the generator that it served or serves during 
2002 and each year thereafter; and 
‘‘(B) for a unit commencing service of a 
generator on or after the date of enactment of 
the Clear Skies Act of 2003, a unit in a State 
serving a generator that produces electricity for 
sale during any year starting with the year the 
unit commences service of a generator, except 
for a gas-fired unit serving one or more genera-
tors with total nameplate capacity of 25 
megawatts or less, or a cogeneration unit that 
produces electricity for sale equal to or less
180
than one-third of the potential electrical output 
of the generator that it serves, during each year 
starting with the unit commences service of a 
generator. 
‘‘(C) Notwithstanding paragraphs (A) and 
(B), the term ‘affected EGU’ does not include 
a solid waste incineration unit subject to section 
129 or a unit for the treatment, storage, or dis-
posal of hazardous waste subject to section 
3005 of the Solid Waste Disposal Act. 
‘‘(2) The term ‘Zone 1 State’ means Alabama, 
Arkansas, Connecticut, Delaware, the District of Co-
lumbia, Florida, Georgia, Illinois, Indiana, Iowa, 
Kentucky, Louisiana, Maine, Maryland, Massachu-
setts, Michigan, Minnesota, Mississippi, Missouri, 
New Hampshire, New Jersey, New York, North 
Carolina, Ohio, Pennsylvania, Rhode Island, South 
Carolina, Tennessee, Texas east of Interstate 35, 
Vermont, Virginia, West Virginia, and Wisconsin. 
‘‘(3) The term ‘Zone 2 State’ means Alaska, 
American Samoa, Arizona, California, Colorado, the 
Commonwealth of Northern Mariana Islands, the 
Commonwealth of Puerto Rico, Guam, Hawaii, 
Idaho, Kansas, Montana, Nebraska, North Dakota, 
New Mexico, Nevada, Oklahoma, Oregon, South Da-
181
kota, Texas west of Interstate 35, Utah, the Virgin 
Islands, Washington, and Wyoming. 
‘‘SEC. 452. APPLICABILITY. 
‘‘(a) ZONE 1 PROHIBITION.—(1) Starting January 1, 
2008, it shall be unlawful for the affected EGUs at a facil-
ity in a Zone 1 State to emit a total amount of nitrogen 
oxides during a year in excess of the number of nitrogen 
oxides allowances held for such facility for that year by 
the owner or operator of the facility. 
‘‘(2) Only nitrogen oxides allowances under section 
453(a) shall be held in order to meet the requirements 
of paragraph (1), except as provided under section 465. 
‘‘(b) ZONE 2 PROHIBITION.—(1) Starting January 1, 
2008, it shall be unlawful for the affected EGUs at a facil-
ity in a Zone 2 State to emit a total amount of nitrogen 
oxides during a year in excess of the number of nitrogen 
oxides allowances held for such facility for that year by 
the owner or operator of the facility. 
‘‘(2) Only nitrogen oxides allowances under section 
453(b) shall be held in order to meet the requirements 
of paragraph (1). 
‘‘SEC. 453. LIMITATIONS ON TOTAL EMISSIONS. 
‘‘(a) ZONE 1 ALLOCATIONS.—For affected EGUs in 
the Zone 1 States for 2008 and each year thereafter, the 
Administrator shall allocate nitrogen oxides allowances
182
under section 454(a), and conduct auctions of nitrogen ox-
ides allowances under section 409, in the amounts in 
Table A.
‘‘TABLE A.—TOTAL NOX ALLOWANCES ALLOCATED OR 
AUCTIONED FOR EGUS IN ZONE 1
Year 
NOX allow-
ances
allocated 
NOX allow-
ances
auctioned 
2008 ................................................................
1,546,380
15,620
2009 ................................................................
1,530,760
31,240
2010 ................................................................
1,515,140
46,860
2011 ................................................................
1,499,520
62,480
2012 ................................................................
1,483,900
78,100
2013 ................................................................
1,468,280
93,720
2014 ................................................................
1,452,660
109,340
2015 ................................................................
1,437,040
124,960
2016 ................................................................
1,421,420
140,580
2017 ................................................................
1,405,800
156,200
2018 ................................................................
1,034,180
127,820
2019 ................................................................
1,022,560
139,440
2020 ................................................................
1,010,940
151,060
2021 ................................................................
999,320
162,680
2022 ................................................................
987,700
174,300
2023 ................................................................
976,080
185,920
2024 ................................................................
964,460
197,540
2025 ................................................................
952,840
209,160
2026 ................................................................
941,220
220,780
2027 ................................................................
929,600
232,400
2028 ................................................................
900,550
261,450
2029 ................................................................
871,500
290,500
2030 ................................................................
842,450
319,550
2031 ................................................................
813,400
348,600
2032 ................................................................
784,350
377,650
2033 ................................................................
755,300
406,700
2034 ................................................................
726,250
435,750
2035 ................................................................
697,200
464,800
2036 ................................................................
668,150
493,850
2037 ................................................................
639,100
522,900
2038 ................................................................
610,050
551,950
2039 ................................................................
581,000
581,000
2040 ................................................................
551,950
610,050
2041 ................................................................
522,900
639,100
2042 ................................................................
493,850
668,150
2043 ................................................................
464,800
697,200
2044 ................................................................
435,750
726,250
2045 ................................................................
406,700
755,300
2046 ................................................................
377,650
784,350
2047 ................................................................
348,600
813,400
2048 ................................................................
319,550
842,450
2049 ................................................................
290,500
871,500
183
‘‘TABLE A.—TOTAL NOX ALLOWANCES ALLOCATED OR 
AUCTIONED FOR EGUS IN ZONE 1—Continued
Year 
NOX allow-
ances
allocated 
NOX allow-
ances
auctioned 
2050 ................................................................
261,450
900,550
2051 ................................................................
232,400
929,550
2052 ................................................................
203,350
958,650
2053 ................................................................
174,300
987,700
2054 ................................................................
145,250
1,016,750
2055 ................................................................
116,200
1,045,800
2056 ................................................................
87,150
1,074,850
2057 ................................................................
58,100
1,103,900
2058 ................................................................
29,050
1,132,950
2059 ................................................................
1,162,000
‘‘(b) ZONE 2 ALLOCATIONS.—For affected EGUs in 
the Zone 2 States for 2008 and each year thereafter, the 
Administrator shall allocate nitrogen oxides allowances 
under section 454(b), and conduct auctions of nitrogen ox-
ides allowances under section 409, in the amounts in 
Table B.
‘‘TABLE B.—TOTAL NOX ALLOWANCES ALLOCATED FOR 
EGUS IN ZONE 2
Year 
NOX allowance
allocated 
NOX allowance
auctioned 
2008 ................................................................
532,620 
5,380
2009 ................................................................
527,240 
10,760
2010 ................................................................
521,860 
16,140
2011 ................................................................
516,480 
21,520
2012 ................................................................
511,100 
26,900
2013 ................................................................
505,720 
32,280
2014 ................................................................
500,340 
37,660
2015 ................................................................
494,960 
43,040
2016 ................................................................
489,580 
48,420
2017 ................................................................
484,200 
53,800
2018 ................................................................
478,820 
59,180
2019 ................................................................
473,440 
64,560
2020 ................................................................
468,060 
69,940
2021 ................................................................
462,680 
75,320
2022 ................................................................
457,300 
80,700
2023 ................................................................
451,920 
86,080
2024 ................................................................
446,540 
91,460
2025 ................................................................
441,160 
96,840
184
‘‘TABLE B.—TOTAL NOX ALLOWANCES ALLOCATED FOR 
EGUS IN ZONE 2—Continued
Year 
NOX allowance
allocated 
NOX allowance
auctioned 
2026 ................................................................
435,780 
102,220
2027 ................................................................
430,400 
107,600
2028 ................................................................
416,950 
121,050
2029 ................................................................
403,500 
134,500
2030 ................................................................
390,050 
147,950
2031 ................................................................
376,600 
161,400
2032 ................................................................
363,150 
174,850
2033 ................................................................
349,700 
188,300
2034 ................................................................
336,250 
201,750
2035 ................................................................
322,800 
215,200
2036 ................................................................
309,350 
228,650
2037 ................................................................
295,900 
242,100
2038 ................................................................
282,450 
255,550
2039 ................................................................
269,000 
269,000
2040 ................................................................
255,550 
282,450
2041 ................................................................
242,100 
295,900
2042 ................................................................
228,650 
309,350
2043 ................................................................
215,200 
322,800
2044 ................................................................
201,750 
336,250
2045 ................................................................
188,300 
349,700 
2046 ................................................................
174,850 
363,150
2047 ................................................................
161,400 
376,600
2048 ................................................................
147,950 
390,050
2049 ................................................................
134,500 
403,500
2050 ................................................................
121,050 
416,950
2051 ................................................................
107,600 
430,400
2052 ................................................................
94,150 
443,850
2053 ................................................................
80,700 
457,300
2054 ................................................................
67,250 
470,750
2055 ................................................................
53,800 
484,200
2056 ................................................................
40,350 
497,650
2057 ................................................................
26,900 
511,100
2058 ................................................................
13,450 
524,550
2059 ................................................................
538,000
‘‘SEC. 454. EGU ALLOCATIONS. 
‘‘(a) EGU ALLOCATIONS IN THE ZONE 1 STATES.—
‘‘(1) EPA REGULATIONS.—Not later than 18 
months before the commencement date of the nitro-
gen oxides allowance requirement of section 452, the 
Administrator shall promulgate regulations deter-
185
mining the allocation of nitrogen oxides allowances 
for each year during 2008 through 2058 for units 
at a facility in a Zone 1 State that commence oper-
ation by and are affected EGUs as of December 31, 
2004. The regulations shall determine the allocation 
for such units for each year by multiplying the allo-
cation amount under section 453(a) by the ratio of 
the total amount of baseline heat input of such units 
at the facility to the total amount of baseline heat 
input of all affected EGUs in the Zone 1 States.
‘‘(2) FAILURE TO REGULATE.—(A) For each 
year 2008 through 2058, if, by the date 18 months 
before January 1 of such year, the Administrator—
‘‘(i) has promulgated regulations under 
section 403(b) providing for the transfer of ni-
trogen oxides allowances and section 403(c) es-
tablishing the Allowance Tracking System for 
nitrogen oxides allowances; and 
‘‘(ii) has signed proposed regulations but 
has not promulgated final regulations deter-
mining allocations under paragraph (1), 
the Administrator shall allocate, for such year, 
for each facility where an affected EGU is located 
in the Zone 1 States the amount of nitrogen oxides
186
allowances specified for that facility in such pro-
posed regulations. 
‘‘(B) For each year 2008 through 2058, if, by 
the date 18 months before January 1 of such year, 
the Administrator—
‘‘(i) has promulgated regulations under 
section 403(b) providing for the transfer of ni-
trogen oxides allowances and section 403(c) es-
tablishing the Allowance Tracking System for 
nitrogen oxides allowances; and 
‘‘(ii) has not signed proposed regulations 
determining allocations under paragraph (1), 
the Administrator shall make allocations, for such 
year, for each unit in the Zone 1 States listed in the 
Administrator’s Emissions Scorecard 2001, Appen-
dix B, Table B1 as provided in subparagraph (C). 
‘‘(C) Allocations of nitrogen oxides allowances 
for a unit under this subparagraph shall be deter-
mined by multiplying 95 percent of the allocation 
amount under section 453(a) by the ratio of such 
unit’s heat input in the Emissions Scorecard 2001, 
Appendix B, Table B1 to the total of the heat input 
in the Emissions Scorecard 2001, Appendix B, 
Table B1 for all units in the Zone 1 States.
187
‘‘(D) When the Administrator makes an alloca-
tion under subparagraph (C), the Administrator 
shall—
‘‘(i) allocate for each facility where a unit 
referred to in subparagraph (C) is located the 
total of the amounts of nitrogen oxides allow-
ances for the units at such facility, and 
‘‘(ii) auction an amount of nitrogen oxides 
allowances equal to 5 percent of the allocation 
amount under section 453(a) and conduct the 
auction on the first business day in October fol-
lowing the respective promulgation deadline re-
ferred to in subparagraph (A) and in accord-
ance with section 409. 
‘‘(E) For each year 2008 through 2058, if the 
Administrator has not signed proposed regulations 
referred to in subparagraph (A) and has not promul-
gated the regulations under section 403(b) providing 
for the transfer of nitrogen oxides allowances and 
section 403(c) establishing the Allowance Tracking 
System for nitrogen oxides allowances, by the date 
18 months before January 1 of such year, then it 
shall be unlawful for an affected EGU in the Zone 
1 States to emit nitrogen oxides during such year in 
excess of 0.14 lb/mmBtu.
188
‘‘(b) EGU ALLOCATIONS IN THE ZONE 2 STATES.—
‘‘(1) EPA REGULATIONS.—Not later than 18 
months before the commencement date of the nitro-
gen oxides allowance requirement of section 452, the 
Administrator shall promulgate regulations deter-
mining the allocation of nitrogen oxides allowances 
for each year during 2008 through 2058 for units 
at a facility in a Zone 2 State that commence oper-
ation by and are affected EGUs as of December 31, 
2004. The regulations shall determine the allocation 
for such units for each year by multiplying the allo-
cation amount under section 453(b) by the ratio of 
the total amount of baseline heat input of such units 
at the facility to the total amount of baseline heat 
input of all affected EGUs in the Zone 2 States. 
‘‘(2) FAILURE TO REGULATE.—(A) For each 
year 2008 through 2058, if, by the date 18 months 
before January 1 of such year, the Administrator—
‘‘(i) has promulgated regulations under 
section 403(b) providing for the transfer of ni-
trogen oxides allowances and section 403(c) es-
tablishing the Allowance Tracking System for 
nitrogen oxides allowances; and
189
‘‘(ii) has signed proposed regulations but 
has not promulgated final regulations deter-
mining allocations under paragraph (1), 
the Administrator shall allocate, for such year, for 
each facility where an affected EGU is located in the 
Zone 2 States the amount of nitrogen oxides allow-
ances specified for that facility in such proposed reg-
ulations. 
‘‘(B) For each year 2008 through 2058, if, by 
the date 18 months before January 1 of such year, 
the Administrator—
‘‘(i) has promulgated regulations under 
section 403(b) providing for the transfer of ni-
trogen oxides allowances and section 403(c) es-
tablishing the Allowance Tracking System for 
nitrogen oxides allowances; and 
‘‘(ii) has not signed proposed regulations 
determining allocations under paragraph (1), 
the Administrator shall make allocations, for such 
year, for each unit in the Zone 2 States listed in the 
Administrator’s Emissions Scorecard 2001, Appen-
dix B, Table B1 as provided in subparagraph (C). 
‘‘(C) Allocations of nitrogen oxides allowances 
for a unit under this subparagraph shall be deter-
mined by multiplying 95 percent of the allocation
191
System for nitrogen oxides allowances, by the date 
18 months before January 1 of such year, then it 
shall be unlawful for an affected EGU in the Zone 
2 States to emit nitrogen oxides during such year in 
excess of 0.25 lb/mmBtu. 
‘‘Subpart 3—Ozone Season Nox Budget Program 
‘‘SEC. 461. DEFINITIONS. 
‘‘For purposes of this subpart: 
‘‘(1) The term ‘ozone season’ means—
‘‘(A) with regard to Connecticut, Delaware, 
the District of Columbia, Maryland, Massachu-
setts, New Jersey, New York, Pennsylvania, 
and Rhode Island, the period May 1 through 
September 30 for each year starting in 2003; 
and 
‘‘(B) with regard to all other States, the 
period May 30, 2004 through September 30, 
2004 and the period May 1 through September 
30 for each year thereafter. 
‘‘(2) The term ‘NOX SIP Call State’ means 
Connecticut, Delaware, the District of Columbia, Il-
linois, Indiana, Kennedy, Maryland, Massachusetts, 
New Jersey, New York, North Carolina, Ohio, Penn-
sylvania, Rhode Island, South Carolina, Tennessee,
192
Virginia, and West Virginia and the fine grid por-
tions of Alabama, Georgia, Michigan, and Missouri. 
‘‘(3) The term ‘fine grid portions of Alabama, 
Georgia, Michigan, and Missouri’ means the areas in 
Alabama, Georgia, Michigan, and Missouri subject 
to 40 CFR § 51.121 (2001), as it would be amended 
in the notice of proposed rulemaking at 67 Federal 
Register 8396 (February 22, 2002). 
‘‘SEC. 462. GENERAL PROVISIONS. 
‘‘The provisions of sections 402 through 406 and sec-
tion 409 shall not apply to this subpart. 
‘‘SEC. 463. APPLICABLE IMPLEMENTATION PLAN. 
‘‘(a) SIPS.—Except as provided in subsection (b), the 
applicable implementation plan for each NOX SIP Call 
State shall be consistent with the requirements, including 
the NOX SIP Call State’s nitrogen oxides budget and com-
pliance supplement pool, in 40 CFR §§ 51.121 and 51.122 
(2001), as it would be amended in the notice of proposed 
rulemaking at 67 Federal Register 8396 (February 22, 
2002). 
‘‘(b) REQUIREMENTS.—Notwithstanding any provi-
sion to the contrary in 40 CFR §§ 51.121 and 51.122 
(2001), as it would be amended in the notice of proposed 
rulemaking at 67 Federal Register 8396 (February 22, 
2002)—
193
‘‘(1) the applicable implementation plan for 
each NOX SIP Call State shall require full imple-
mentation of the required emission control measures 
starting no later than the first ozone season; and 
‘‘(2) starting January 1, 2008—
‘‘(A) the owners and operators of a boiler, 
combustion turbine, or integrated gasification 
combined cycle plant subject to emission reduc-
tion requirements or limitations under part B, 
C, or D shall not longer be subject to the re-
quirements in a NOX SIP Call State’s applica-
ble implementation plan that meet the require-
ments of subsection (a) and paragraph (1); and 
‘‘(B) notwithstanding subparagraph (A), if 
the Administrator determines, by December 31, 
2007, that a NOX SIP Call State’s applicable 
implementation plan meets the requirements of 
subsection (a) and paragraph (1), such applica-
ble implementation plan shall be deemed to con-
tinue to meet such requirements; and 
‘‘(3)(A) The owner or operator of a boiler, com-
bustion turbine, or combined cycle system may sub-
mit to the Administrator a petition to allow use of 
nitrogen oxides allowances allocated for 2005 to 
meet the applicable requirement to hold nitrogen ox-
194
ides allowances at least equal to 2004 ozone season 
emissions of such boiler, combustion turbine, or 
combined cycle system. 
‘‘(B) A petition under this paragraph shall be 
submitted to the Administrator by February 1, 
2004. 
‘‘(C) The petition shall demonstrate that the 
owner or operator made reasonable efforts to install, 
at the boiler, combustion turbine, or combined cycle 
system, nitrogen oxides control technology designed 
to allow the owner or operator to meet such require-
ment to hold nitrogen oxides allowances. 
‘‘(D) The petition shall demonstrate that there 
is an undue risk for the reliability of electricity sup-
ply (taking into account the feasibility of purchasing 
electricity or nitrogen oxides allowances) because—
‘‘(i) the owner or operator is not likely to 
be able to install and operate the technology 
under subparagraph (C) on a timely basis; or 
‘‘(ii) the technology under subparagraph 
(C) is not likely to be able to achieve its design 
control level on a timely basis. 
‘‘(E) The petition shall include a statement by 
the NOX SIP Call State where the boiler, combus-
tion turbine, or combined cycle system is located
195
that the NOX SIP Call State does not object to the 
petition. 
‘‘(F) By May 30, 2004, by order, the Adminis-
trator shall approve the petition if it meets the re-
quirements of subparagraphs (B) through (E). 
‘‘(c) SAVINGS PROVISION.—Nothing in this section or 
section 464 shall preclude or deny the right of any State 
or political subdivision thereof to adopt or enforce any reg-
ulation, requirement, limitation, or standard, relating to 
a boiler, combustion turbine, or integrated gasification 
combined cycle plant subject to emission reduction re-
quirements or limitations under part B, C, or D, that is 
more stringent than a regulation, requirement, limitation, 
or standard in effect under this section or under any other 
provision of this Act. 
‘‘SEC. 464. TERMINATION OF FEDERAL ADMINISTRATION 
OF NOX TRADING PROGRAM FOR EGUS. 
‘‘Starting January 1, 2008, with regard to any boiler, 
combustion turbine, or integrated gasification combined 
cycle plant subject to emission reduction requirements or 
limitations under part B, C, or D, the Administrator shall 
not administer any nitrogen oxides trading program in-
cluded in any NOX SIP Call State’s applicable implemen-
tation plan and meeting the requirements of section 
463(a) and (b)(1).
196
‘‘SEC. 465. CARRYFORWARD OF PRE-2008 NITROGEN OXIDES 
ALLOWANCES. 
‘‘The Administrator shall promulgate regulations as 
necessary to assure that the requirement to hold allow-
ances under section 452(a)(1) may be met using nitrogen 
oxides allowances allocated for an ozone season before 
2008 under a nitrogen oxides trading program that the 
Administrator administers, is included in a NOX SIP Call 
State’s applicable implementation plan, and meets the re-
quirements of section 463(a) and (b)(1). 
‘‘PART D—MERCURY EMISSIONS REDUCTIONS 
‘‘SEC. 471. DEFINITIONS. 
‘‘For purposes of this subpart: 
‘‘(1) The term ‘adjusted baseline heat input’ 
with regard to a unit means the unit’s baseline heat 
input multiplied by—
‘‘(A) 1.0, for the portion of the baseline 
heat input that is the unit’s average annual 
combustion of bituminous during the years on 
which the unit’s baseline heat input is based;
‘‘(B) 3.0, for the portion of the baseline 
heat input that is the unit’s average annual 
combustion of lignite during the years on which 
the unit’s baseline heat input is based; 
‘‘(C) 1.25, for the portion of the baseline 
heat input that is the unit’s average annual
197
combustion of subbituminous during the years 
on which the unit’s baseline heat input is based; 
and 
‘‘(D) 1.0, for the portion of the baseline 
heat input that is not covered by subparagraph 
(A), (B), or (C) or for the entire baseline heat 
input if such baseline heat input is not based 
on the unit’s heat input in specified years. 
‘‘(2) The term ‘affected EGU’ means—
‘‘(A) for a unit serving a generator before 
the date of enactment of the Clear Skies Act of 
2003, a coal-fired unit in a State serving a gen-
erator with a nameplate capacity of greater 
than 25 megawatts that produced or produces 
electricity for sale during 2002 or any year 
thereafter, except for a cogeneration unit that 
produced or produces electricity for sale equal 
to or less than one-third of the potential elec-
trical output of the generator that it served or 
serves during 2002 and each year thereafter; 
and 
‘‘(B) for a unit commencing service of a 
generator on or after the date of enactment of 
the Clear Skies Act of 2003, a coal-fired unit 
in a State serving a generator that produces
198
electricity for sale during any year starting with 
the year the unit commences service of a gener-
ator, except for a cogeneration unit that pro-
duces electricity for sale equal to or less than 
one-third of the potential electrical output of 
the generator that it serves, during each year 
starting with the year the unit commences serv-
ice of a generator. 
‘‘(C) Notwithstanding paragraphs (A) and 
(B), the term ‘affected EGU’ does not include 
a solid waste incineration unit subject to section 
129 or a unit for the treatment, storage, or dis-
posal of hazardous waste subject to section 
3005 of the Solid Waste Disposal Act. 
‘‘SEC. 472. APPLICABILITY. 
‘‘Starting January 1, 2010, it shall be unlawful for 
the affected EGUs at a facility in a State to emit a total 
amount of mercury during the year in excess of the num-
ber of mercury allowances held for such facility for that 
year by the owner or operator of the facility. 
‘‘SEC. 473. LIMITATIONS ON TOTAL EMISSIONS. 
‘‘For affected EGUs for 2010 and each year there-
after, the Administrator shall allocate mercury allowances 
under section 474, and conduct auctions of mercury allow-
ances under section 409, in the amounts in Table A.
200
‘‘TABLE A.—TOTAL MERCURY ALLOWANCES 
ALLOCATED OR AUCTIONED FOR EGUS—Continued
Year 
Mercury
allowances
allocated 
Mercury
allowances
auctioned 
2059 ................................................................
24,000
456,000
2060 ................................................................
12,000
468,000
2061 ................................................................
480,000
‘‘SEC. 474. EGU ALLOCATIONS. 
‘‘(a) IN GENERAL.—Not later than 24 months before 
the commencement date of the mercury allowance require-
ment of section 472, the Administrator shall promulgate 
regulations determining allocations of mercury allowances 
for each year during 2010 through 2060 for units at a 
facility that commence operation by and are affected 
EGUs as of December 31, 2004. The regulations shall 
provide that the Administrator shall allocate each year for 
such units an amount determined by multiplying the allo-
cation amount in section 473 by the ratio of the total 
amount of the adjusted baseline heat input of such units 
at the facility to the total amount of adjusted baseline heat 
input of all affected EGUs. 
‘‘(b) FAILURE TO PROMULGATE.—(1) For each year 
2010 through 2060, if, by the date 18 months before Jan-
uary 1 of such year, the Administrator—
‘‘(A) has promulgated regulations under section 
403(b) providing for the transfer of mercury allow-
201
ances and section 403(c) establishing the Allowance 
Tracking System for mercury allowances; and 
‘‘(B) has signed proposed regulations but has 
not promulgated final regulations determining allo-
cations under subsection (a), 
the Administrator shall allocate, for such year, for each 
facility where an affected EGU is located the amount of 
mercury allowances specified for that facility in such pro-
posed regulations. 
‘‘(2) If, by the date 18 months before January 1 of 
each year 2010 through 2060, the Administrator has not 
signed proposed regulations determining allocations under 
subsection (a), the Administrator shall: 
‘‘(A) determine, for such year, for each unit 
with coal as its primary or secondary fuel listed in 
the Administrator’s Emissions Scorecard 2001, Ap-
pendix B, Table B1 an amount of mercury allow-
ances by multiplying 95 percent of the allocation 
amount under section 473 by the ratio of such unit’s 
heat input in the Emissions Scorecard 2001, Appen-
dix B, Table B1 to the total of the heat input in the 
Emissions Scorecard 2001, Appendix B, Table B1 
for all units with coal as their primary or secondary 
fuel;
202
‘‘(B) allocate, for such year, for each facility 
where a unit under subparagraph (A) is located the 
total of the amounts of mercury allowances for the 
units at such facility determined under subpara-
graph (A); and 
‘‘(C) auction an amount of mercury allowances 
equal to 5 percent of the allocation amount under 
section 473 and conduct the auction on the first 
business day in October following the respective pro-
mulgation deadline under paragraph (1) and in ac-
cordance with section 409. 
‘‘(3) For each year 2010 through 2060, if the Admin-
istrator has not signed proposed regulations under sub-
section (a), and has not promulgated the regulations 
under section 403(b) providing for the transfer of mercury 
allowances and section 403(c) establishing the Allowance 
Tracking System for mercury allowances, by the date 18 
months before January 1 of such year, then it shall be 
unlawful for any affected EGU to emit mercury during 
such year in excess of 30 percent of the mercury content 
(in ounces per mmBtu) of the coal and coal-derived fuel 
combusted by the unit.
203
‘‘PART 
E—NATIONAL 
EMISSION 
STANDARDS;
RESEARCH; 
ENVIRONMENTAL 
ACCOUNT-
ABILITY; 
MAJOR 
SOURCE 
PRECONSTRUCTION 
REVIEW 
AND 
BEST 
AVAILABLE 
RETROFIT 
CONTROL 
TECH-
NOLOGY REQUIREMENTS 
‘‘SEC. 481. NATIONAL EMISSION STANDARDS FOR AF-
FECTED UNITS. 
‘‘(a) DEFINITIONS.—For purposes of this section: 
‘‘(1) The term ‘commenced’, with regard to con-
struction, means that an owner or operator has ei-
ther undertaken a continuous program of construc-
tion or has entered into a contractual obligation to 
undertake and complete, within a reasonable time, a 
continuous program of construction. For boilers and 
integrated gasification combined cycle plants, this 
term does not include undertaking such a program 
or entering into such an obligation more than 36 
months prior to the date on which the unit begins 
operation. For combustion turbines, this term does 
not include undertaking such a program or entering 
into such an obligation more than 18 months prior 
to the date on which the unit begins operation. 
‘‘(2) The term ‘construction’ means fabrication, 
erection, or installation of an affected unit.
204
‘‘(3) The term ‘affected unit’ means any unit 
that is subject to emission limitations under subpart 
2 of part B, subpart 2 of part C, or part D. 
‘‘(4) The term ‘existing affected unit’ means 
any affected unit that is not a new affected unit. 
‘‘(5) The term ‘new affected unit’ means any 
affected unit, the construction or reconstruction of 
which is commenced after the date of enactment of 
the Clear Skies Act of 2003, except that for the pur-
pose of any revision of a standard pursuant to sub-
section (e), ‘new affected unit’ means any affected 
unit, the construction or reconstruction of which is 
commenced after the public of regulations (or, if ear-
lier, proposed regulations) prescribing a standard 
under this section that will apply to such unit. 
‘‘(6) The term ‘reconstruction’ means the re-
placement of components of a unit to such an extent 
that—
‘‘(A) the fixed capital cost of the new com-
ponents exceeds 50 percent of the fixed capital 
cost that would be required to construct a com-
parable entirely new unit; and 
‘‘(B) it is technologically and economically 
feasible to meet the applicable standards set 
forth in this section.
205
‘‘(b) EMISSION STANDARDS.—
‘‘(1) IN GENERAL.—No later than 12 months 
after the date of enactment of the Clear Skies Act 
of 2003, the Administrator shall promulgate regula-
tions prescribing the standards in subsections (c) 
through (d) for the specified affected units and es-
tablishing requirements to ensure compliance with 
these standards, including monitoring, record-
keeping, and reporting requirements. 
‘‘(2) MONITORING.—(A) The owner or operator 
of any affected unit subject to the standards for sul-
fur dioxide, nitrogen oxides, or mercury under this 
section shall meet the requirements of section 405, 
except that, where two or more units utilize a single 
stack, separate monitoring shall be required for each 
affected unit for the pollutants for which the unit is 
subject to such standards. 
‘‘(B) The Administrator shall, by regulation, re-
quire—
‘‘(i) the owner or operator of any affected 
unit subject to the standards for sulfur dioxide, 
nitrogen oxides, or mercury under this section 
to—
‘‘(I) install and operate CEMS for 
monitoring output, including electricity and
206
useful thermal energy, on the affected unit 
and to quality assure the data; and 
‘‘(II) comply with recordkeeping and 
reporting requirements, including provi-
sions for reporting output data in mega-
watt hours. 
‘‘(ii) the owner or operator of any affected 
unit subject to the standards for particulate 
matter under this section to—
‘‘(I) install and operate CEMS for 
monitoring particulate matter on the af-
fected unit and to quality assure the data; 
‘‘(II) comply with recordkeeping and 
reporting requirements; and 
‘‘(III) comply with alternative moni-
toring, quality assurance, recordkeeping, 
and reporting requirements for any period 
of time for which the Administrator deter-
mines that CEMS with appropriate vendor 
guarantees are not commercially available 
for particulate matter. 
‘‘(3) COMPLIANCE.—For boilers, integrated 
gasification combined cycle plants, and combustion 
turbines that are gas-fired or coal fired, the Admin-
istrator shall require that the owner or operator
207
demonstrate compliance with the standards daily, 
using a 30-day rolling average, except that in the 
case of mercury, the compliance period shall be the 
calendar year. For combustion turbines that are not 
gas-fired or coal-fired, the Administrator shall re-
quire that the owner or operator demonstrate com-
pliance with the standards hourly, using a 4-hour 
rolling average. 
‘‘(c) BOILERS AND INTEGRATED GASIFICATION COM-
BINED CYCLE PLANTS.—
‘‘(1) After the effective date of standards pro-
mulgated under subsection (b), no owner or operator 
shall cause any boiler or integrated gasification com-
bined cycle plant that is a new affected unit to dis-
charge into the atmosphere any gases which con-
tain—
‘‘(A) sulfur dioxide in excess of 2.0 lb/
MWh; 
‘‘(B) nitrogen oxides in excess of 1.0 lb/
MWh; 
‘‘(C) particulate matter in excess of 0.20 
lb/MWh; or 
‘‘(D) if the unit is coal-fired, mercury in 
excess of 0.015 lb/GWh, unless—
208
‘‘(i) mercury emissions from the unit, 
determined assuming no use of on-site or 
off-site pre-combustion treatment of coal 
and no use of technology that captures 
mercury, are reduced by 80 percent; 
‘‘(ii) flue gas desulfurization (FGD) 
and selective catalytic reduction (SCR) are 
applied to the unit and are operated so as 
to optimize capture of mercury; or 
‘‘(iii) a technology is applied to the 
unit and operated so as to optimize cap-
ture of mercury, and the permitting au-
thority determines that the technology is 
equivalent in terms of mercury capture to 
the application of FGD and SCR. 
‘‘(2) Notwithstanding paragraph (1)(D), inte-
grated gasification combined cycle plants with a 
combined capacity of less than 5 GW are exempt 
from the mercury requirement under subparagraph 
(1)(D) if they are constructed as part of a dem-
onstration project under the Secretary of Energy 
that will include a demonstration of removal of sig-
nificant amounts of mercury as determined by the 
Secretary of Energy in conjunction with the Admin-
istrator as part of the solicitation process.
209
‘‘(3) After the effective date of standards pro-
mulgated under subsection (b), no owner or operator 
shall cause any oil-fired boiler that is an existing af-
fected unit to discharge into the atmosphere any 
gases which contain particulate matter in excess of 
0.30 lb/MWh. 
‘‘(d) COMBUSTION TURBINES.—
‘‘(1) After the effective date of standards pro-
mulgated under subsection (b), no owner or operator 
shall cause any gas-fired combustion turbine that is 
a new affected unit to discharge into the atmosphere 
any gases which contain nitrogen oxides in excess 
of—
‘‘(A) 0.56 lb/MWh (15 ppm at 15 percent 
oxygen), if the unit is a simple cycle combustion 
turbine; 
‘‘(B) 0.084 lb/MWh (3.5 ppm at 15 per-
cent oxygen), if the unit is not a simple cycle 
combustion turbine and either uses add-on con-
trols or is located within 50 km of a class I 
area; or 
‘‘(C) 0.21 lb/MWh (9 ppm at 15 percent 
oxygen), if the unit is not a simple cycle turbine 
and neither uses add-on controls nor is located 
within 50 km of a class I area.
210
‘‘(2) After the effective date of standards pro-
mulgated under subsection (b), no owner or operator 
shall cause any coal-fired combustion turbine that is 
a new affected unit to discharge into the atmosphere 
any gases which contain sulfur dioxide, nitrogen ox-
ides, particulate matter, or mercury in excess of the 
emission limits under subparagraphs (c)(1) (A) 
through (D). 
‘‘(3) After the effective date of standards pro-
mulgated under subsection (b), no owner or operator 
shall cause any combustion turbine that is not gas-
fired or coal-fired and that is a new affected unit to 
discharge into the atmosphere any gases which con-
tain—
‘‘(A) sulfur dioxide in excess of 2.0lb/
MWh; 
‘‘(B) nitrogen oxides in excess of—
‘‘(i) 0.289 lb/MWh (12 ppm at 15 
percent oxygen), if the unit is not a simple 
cycle combustion turbine, is dual-fuel capa-
ble, and uses add-on controls; or is not a 
simple cycle combustion turbine and is lo-
cated within 50 km of a class I area; 
‘‘(ii) 1.01 lb/MWh (42 ppm at 15 per-
cent oxygen), if the unit is a simple cycle
211
combustion turbine; is not a simple cycle 
combustion turbine and is not dual-fuel ca-
pable; or is not a simple cycle combustion 
turbine, is dual-fuel capable, and does not 
use add-on controls. 
‘‘(C) particulate matter in excess of 0.20 
lb/MWh. 
‘‘(e) PERIODIC REVIEW AND REVISION.—
‘‘(1) The Administrator shall, at least every 8 
years following the promulgation of standards under 
subsection (b), review and, if appropriate, revise 
such standards to reflect the degree of emission limi-
tation achievable through the application of the best 
system of emission reduction which (taking into ac-
count the cost of achieving such reduction and any 
nonair quality health and environmental impacts and 
energy requirements) the Administrator determines 
has been adequately demonstrated. When implemen-
tation and enforcement of any requirement of this 
Act indicate that emission limitations and percent 
reductions beyond those required by the standards 
promulgated under this section are achieved in prac-
tice, the Administrator shall, when revising stand-
ards promulgated under this section, consider the
212
emission limitations and percent reductions achieved 
in practice. 
‘‘(2) Notwithstanding the requirements of para-
graph (1) the Administrator need not review any 
standard promulgated under subsection (b) if the 
Administrator determines that such review is not ap-
propriate in light of readily available information on 
the efficacy of such standard. 
‘‘(f) EFFECTIVE DATE.—Standard promulgated pur-
suant to this section shall become effective upon promul-
gation. 
‘‘(g) DELEGATION.—
‘‘(1) Each State may develop and submit to the 
Administration a procedure for implementing and 
enforcing standards promulgated under this section 
for affected units located in such State. If the Ad-
ministrator finds the State procedure is adequate, 
the Administrator shall delegate to such State any 
authority the Administrator has under this Act to 
implement and enforce such standards. 
‘‘(2) Nothing in this subsection shall prohibit 
the Administrator from enforcing any applicable 
standard under this section. 
‘‘(h) VIOLATIONS.—After the effective date of stand-
ards promulgated under this section, it shall be unlawful
213
for any owner or operator of any affected unit to operate 
such unit in violation of any standard applicable to such 
unit. 
‘‘(i) COORDINATION WITH OTHER AUTHORITIES.—
For purposes of sections 111(e), 113, 114, 116, 120, 303, 
304, 307 and other provisions for the enforcement of this 
Act, each standard established pursuant to this section 
shall be treated in the same manner as a standard of per-
formance under section 111, and each affected unit sub-
ject to standards under this section shall be treated in the 
same manner as a stationary source under section 111. 
‘‘(j) STATE AUTHORITY.—Nothing in this section 
shall preclude or deny the right of any State or political 
subdivision thereof to adopt or enforce any regulation, re-
quirement, limitation, or standard relating to affected 
units that is more stringent than a regulation, require-
ment, limitation, or standard in effect under this section 
or under any other provision of this Act. 
‘‘(k) OTHER AUTHORITY UNDER THIS ACT.—Noth-
ing in this section shall diminish the authority of the Ad-
ministrator or a State to establish any other requirements 
applicable to affected units under any other authority of 
law, including the authority to establish for any air pollut-
ant a national ambient air quality standard, except that 
no new affected unit subject to standards under this sec-
214
tion shall be subject to standards under section 111 of 
this Act. 
‘‘SEC. 482. RESEARCH, ENVIRONMENTAL MONITORING, AND 
ASSESSMENT. 
‘‘(a) PURPOSES.—The Administrator, in collabora-
tion with the Secretary of Energy and the Secretary of 
the Interior, shall conduct a comprehensive program of re-
search, environmental monitoring, and assessment to en-
hance scientific understanding of the human health and 
environmental effects of particulate matter and mercury 
and to demonstrate the efficacy of emission reductions 
under this title. The purposes of such a program are to—
‘‘(1) expand current research and knowledge of 
the contribution of emissions from electricity genera-
tion to exposure and health effects associated with 
particulate matter and mercury; 
‘‘(2) enhance current research and development 
of promising multi-pollutant control strategies and 
CEMS for mercury; 
‘‘(3) produce peer-reviewed scientific and tech-
nology information to inform the review of emissions 
levels under section 410; 
‘‘(4) improve environmental monitoring and as-
sessment of sulfur dioxide, nitrogen oxides and mer-
cury, and their transformation products, to track
215
changes in human health and the environment at-
tributable to emission reductions under this title; 
and 
‘‘(5) periodically provide peer-reviewed reports 
on the costs, benefits, and effectiveness of emission 
reductions achieved under this title. 
‘‘(b) RESEARCH.—The Administrator shall enhance 
planned and ongoing laboratory and field research and 
modeling analyses, and conduct new research and analyses 
to produce peer-reviewed information concerning the 
human health and environmental effects of mercury and 
particulate matter and the contribution of United States 
electrical generating units to those effects. Such informa-
tion shall be included in the report under subsection (d). 
In addition, such research and analyses shall—
‘‘(1) improve understanding of the rates and 
processes governing chemical and physical trans-
formations of mercury in the atmosphere, including 
speciation of emissions from electricity generation 
and the transport of these species; 
‘‘(2) improve understanding of the contribution 
of mercury emissions from electricity generation to 
mercury in fish and other biota, including—
‘‘(A) the response of and contribution to 
mercury in the biota owing to atmospheric dep-
216
osition of mercury from U.S. electricity genera-
tion on both local and regional scales;
‘‘(B) long-term contributions of mercury 
from U.S. electricity generation on mercury ac-
cumulations in ecosystems, and the effects of 
mercury reductions in that sector on the envi-
ronment and public health; 
‘‘(C) the role and contribution of mercury, 
from U.S. electricity generating facilities and 
anthropogenic and natural sources to fish con-
tamination and to human exposure, particularly 
with respect to sensitive populations; 
‘‘(D) the contribution of U.S. electricity 
generation to population exposure to mercury in 
freshwater fish and seafood and quantification 
of linkages between U.S. mercury emissions and 
domestic mercury exposure and its health ef-
fects; and 
‘‘(E) the contribution of mercury from 
U.S. electricity generation in the context of 
other domestic and international sources of 
mercury, including transport of global anthro-
pogenic and natural background levels; 
‘‘(3) improve understanding of the health ef-
fects of fine particulate matter components related
217
to electricity generation emissions (as distinct from 
other fine particle fractions and indoor air expo-
sures) and the contribution of U.S. electrical gener-
ating units to those effects including—
‘‘(A) the chronic effects of fine particulate 
matter from electricity generation in sensitive 
population groups; and 
‘‘(B) personal exposure to fine particulate 
matter from electricity generation; and 
‘‘(4) improve understanding, by way of a review 
of the literature, of methods for valuing human 
health and environmental benefits associated with 
fine particulate matter and mercury. 
‘‘(c) INNOVATIVE CONTROL TECHNOLOGIES.—The 
Administrator shall collaborate with the Secretary of En-
ergy to enhance research and development, and conduct 
new research that facilitates research into and develop-
ment of innovative technologies to control sulfur dioxide, 
nitrogen oxides, mercury, and particulate matter at a 
lower cost than existing technologies. Such research and 
development shall provide updated information on the cost 
and feasibility of technologies. Such information shall be 
included in the report under subsection (d). In addition, 
the research and development shall—
218
‘‘(1) upgrade cost and performance models to 
include results from ongoing and future electricity 
generation and pollution control demonstrations by 
the Administrator and the Secretary of Energy; 
‘‘(2) evaluate the overall environmental implica-
tions of the various technologies tested including the 
impact on the characteristics of coal combustion res-
idues; 
‘‘(3) evaluate the impact of the use of selective 
catalytic reduction on mercury emissions from the 
combustion of all coal types; 
‘‘(4) evaluate the potential of integrated gasifi-
cation combined cycle to adequately control mercury; 
‘‘(5) expand current programs by the Adminis-
trator to conduct research and promote, lower cost 
CEMS capable of providing real-time measurements 
of both speciated and total mercury and integrated 
compact CEMS that provide cost-effective real-time 
measurements of sulfur dioxide, nitrogen oxides, and 
mercury; 
‘‘(6) expand lab- and pilot-scale mercury and 
multi-pollutant control programs by the Secretary of 
Energy and the Administrator, including develop-
ment of enhanced sorbents and scrubbers for use on 
all coal types;
219
‘‘(7) characterize mercury emissions from low-
rank coals, for a range of traditional control tech-
nologies, like scrubbers and selective catalytic reduc-
tion; and 
‘‘(8) improve low cost combustion modifications 
and controls for dry-bottom boilers. 
‘‘(d) EMISSIONS LEVELS EVALUATION REPORT.—
Not later than January 1, 2008, the Administrator, in 
consultation with the Secretary of Energy, shall prepare 
a peer reviewed report to inform review of the emissions 
levels under section 410. The report shall be based on the 
best available peer-reviewed scientific and technology in-
formation. It shall address cost, feasibility, human health 
and ecological effects, and net benefits associated with 
emissions levels under this title. 
‘‘(e) ENVIRONMENTAL ACCOUNTABILITY.—
‘‘(1) MONITORING AND ASSESSMENT.—The Ad-
ministrator shall conduct a program of environ-
mental monitoring and assessment to track on a 
continuing basis, changes in human health and the 
environment attributable to the emission reductions 
required under this title. Such a program shall—
‘‘(A) develop and employ methods to rou-
tinely monitor, collect, and compile data on the 
status and trends of mercury and its trans-
220
formation products in emissions from affected 
facilities, atmospheric deposition, surface water 
quality, and biological systems. Emphasis shall 
be placed on those methods that—
‘‘(i) improve the ability to routinely 
measure mercury in dry deposition proc-
esses; 
‘‘(ii) improve understanding of the 
spatial and temporal distribution of mer-
cury deposition in order to determine 
source-receptor relationships and patterns 
of long-range, regional, and local deposi-
tion; 
‘‘(iii) improve understanding of aggre-
gate exposures and additive effects of 
methylmercury and other pollutants; and 
‘‘(iv) improve understanding of the ef-
fectiveness and cost of mercury emissions 
controls; 
‘‘(B) modernize and enhance the national 
air quality and atmospheric deposition moni-
toring networks in order to cost-effectively ex-
pand and integrate, where appropriate, moni-
toring capabilities for sulfur, nitrogen, and mer-
221
cury to meet the assessment and reporting re-
quirements of this section; 
‘‘(C) perform and enhance long-term moni-
toring of sulfur, nitrogen, and mercury, and pa-
rameters related to acidification, nutrient en-
richment, and mercury bioaccumulation in 
freshwater and marine biota; 
‘‘(D) maintain and upgrade models that 
describe the interactions of emissions with the 
atmosphere and resulting air quality implica-
tions and models that describe the response of 
ecosystems to atmospheric deposition; and 
‘‘(E) assess indicators of ecosystems health 
related to sulfur, nitrogen, and mercury, includ-
ing characterization of the causes and effects of 
episodic exposure to air pollutants and evalua-
tion of recovery. 
‘‘(2) REPORTING
REQUIREMENTS.—Not later 
than January 1, 2008, and not later than every 4 
years thereafter, the Administrator shall provide a 
peer reviewed report to the Congress on the costs, 
benefits, and effectiveness of emission reduction pro-
grams under this title. The report shall address the 
relative contribution of emission reductions from 
U.S. electricity generation under this title compared
223
larly with respect to high elevation watersheds; 
and 
‘‘(I) reduction in atmospheric deposition 
rates that should be achieved to prevent or re-
duce adverse ecological effects. 
‘‘SEC. 
483. 
EXEMPTION 
FROM 
MAJOR 
SOURCE 
PRECONSTRUCTION REVIEW REQUIREMENTS 
AND BEST AVAILABLE RETROFIT CONTROL 
TECHNOLOGY REQUIREMENTS. 
‘‘(a) MAJOR SOURCE EXEMPTION.—An affected unit 
shall not be considered a major emitting facility or major 
stationary source, or a part of a major emitting facility 
or major stationary source for purposes of compliance with 
the requirements of parts C and part D of title I. This 
exemption only applies to units that are either subject to 
the performance standards of section 481 or meet the fol-
lowing requirements within 3 years after the date of enact-
ment of the Clear Skies Act of 2003: 
‘‘(1) The owner or operator of the affected unit 
properly operates, maintains and repairs pollution 
control equipment to limit emissions of particulate 
matter, or the owner or operator of the affected unit 
is subject to an enforceable permit issued pursuant 
to title V or a permit program approved or promul-
gated as part of an applicable implementation plan
224
to limit the emissions of particular matter from the 
affected unit to 0.03 lb/mmBtu within 8 years after 
the date of enactment of the Clear Skies Act of 
2003, and 
‘‘(2) The owner or operator of the affected unit 
uses good combustion practices to minimize emis-
sions of carbon monoxide. 
‘‘(b) 
CLASS
I 
AREA
PROTECTIONS.—Notwith-
standing the exemption in subsection (a), an affected unit 
located within 50 km of a Class I area on which construc-
tion commences after the date of enactment of the Clear 
Skies Act of 2003 is subject to those provisions under part 
C of title I pertaining to the review of a new or modified 
major stationary source’s impact on a Class I area. 
‘‘(c) 
PRECONSTRUCTION
REQUIREMENTS.—Each 
State shall include in its plan under section 110, as pro-
gram to provide for the regulation of the construction of 
an affected unit that ensures that the following require-
ments are met prior to the commencement of construction 
of an affected unit—
‘‘(1) in an area designated as attainment or 
unclassifiable under section 107(d), the owner or op-
erator of the affected unit must demonstrate to the 
State that the emissions increase from the construc-
tion or operation of such unit will not cause, or con-
225
tribute to, air pollution in excess of any national am-
bient air quality standard; 
‘‘(2) in an area designated as nonattainment 
under section 107(d), the State must determine that 
the emissions increase from the construction or oper-
ation of such unit will not interfere with any pro-
gram to assure that the national ambient air quality 
standards are achieved;
‘‘(3) for a modified unit, the unit must comply 
prior to beginning operation with either the perform-
ance standards of section 481 or best available con-
trol technology as defined in part C of title I for the 
pollutants whose hourly emissions will increase at 
the unit’s maximum capacity; and 
‘‘(4) the State must provide for an opportunity 
for interested persons to comment on the Class I 
area protections and preconstruction requirements 
as set forth in this section. 
‘‘(d) DEFINITIONS.—For purposes of this section: 
‘‘(1) The term ‘affected unit’ means any unit 
that is subject to emission limitations under subpart 
2 of part B, subpart 2 of part C, or part D. 
‘‘(2) The term ‘construction’ includes the con-
struction of a new affected unit and the modification 
of any affected unit.
226
‘‘(3) The term ‘modification’ means any phys-
ical change in, or change in the method of operation 
of, an affected unit that increases the maximum 
hourly emissions of any pollutant regulated under 
this Act above the maximum hourly emissions 
achievable at that unit during the 5 years prior to 
the change or that results in the emission of any 
pollutant regulated under this Act and not pre-
viously emitted. 
‘‘(e) SAVINGS CLAUSE.—Nothing in this section shall 
preclude or deny the right of any State or political subdivi-
sion thereof to adopt to enforce any regulation, require-
ments, limitation, or standard relating to affected units 
that is more stringent than a regulation, requirement, lim-
itation, or standard in effect under this section or under 
any other provision of this Act.’’. 
SEC. 3. OTHER AMENDMENTS. 
(a) Title I of the Clean Air Act is amended as follows: 
(1) In section 103 by repealing subparagraphs 
(E) and (F). 
(2) In section 107—
(A) By amending subparagraph (A) of 
subsection (d)(1) as follows: 
(i) strike ‘‘or’’ at the end of clause 
(ii);
227
(ii) strike the period at the end of 
clause (iii) and insert ‘‘, or’’; 
(iii) add the following clause (iv) after 
clause (iii): 
‘‘(iv) 
notwithstanding 
clauses 
(i) 
through (iii), an area may be designated 
transitional for the PM 2.5 national pri-
mary or secondary ambient air quality 
standards or the 8-hour ozone national pri-
mary or secondary ambient air quality 
standard if the Administrator has per-
formed air quality modeling and, in the 
case of an area that needs additional local 
control measures, the State has performed 
supplemental air quality modeling, dem-
onstrating that the area will attain the ap-
plicable standard or standards no later 
than December 31, 2015, and such mod-
eling demonstration and all necessary local 
controls have been approved into the State 
implementation plan no later than Decem-
ber 31, 2004.’’. 
(iv) add at the end a sentence to read 
as follows: ‘‘For purposes of the PM 2.5 
national primary or secondary ambient air
228
quality standards, the time period for the 
State to submit the designations shall be 
extended to no later than December 31, 
2003.’’. 
(B) By amending clause (i) of subsection 
(d)(1)(B) by adding at the end a sentence to 
read as follows: ‘‘The Administrator shall not 
be required to designate areas for the revised 
PM 2.5 national primary or secondary ambient 
air quality standards prior to 6 months after 
the States are required to submit recommenda-
tions under section 107(d)(1)(A), but in no 
event shall the period for designating such 
areas be extended beyond December 31, 2004.’’. 
(3) In section 110 as follows: 
(A) By amending clause (i) of subsection 
(a)(2)(D) by inserting ‘‘except as provided in 
subsection (q),’’ before the word ‘‘prohibiting’’. 
(B) By adding the following new sub-
sections at the end thereof: 
‘‘(q) REVIEW OF CERTAIN PLANS.—(1) The Admin-
istrator shall, in reviewing, under clause (i) of subsection 
(a)(2)(D), any plan with respect to affected units, within 
the meaning of section 126(d)(1)—
229
‘‘(A) consider, among other relevant factors, 
emissions reductions required to occur by the attain-
ment date or dates of any relevant nonattainment 
areas in the other State or States; 
‘‘(B) not require submission of plan provisions 
mandating emissions reductions from such affected 
units, unless the Administrator determines that—
‘‘(i) emissions from such units may be re-
duced at least as cost-effectively as emissions 
from each other principal category of sources of 
sulfur dioxide or nitrogen oxides, including in-
dustrial boilers, on-road mobile sources, and 
off-road mobile sources, and any other category 
of sources that the Administrator may identify, 
and 
‘‘(ii) reductions in such emissions will im-
prove air quality in the other State’s or States’ 
nonattainment areas at least as cost-effectively 
as reductions in emissions from each other prin-
cipal category of sources of sulfur dioxide or ni-
trogen oxides, to the maximum extent that a 
methodology is reasonably available to make 
such a determination;
230
‘‘(C) develop and appropriate peer reviewed 
methodology for making determinations under sub-
paragraph (B) by December 31, 2006; and 
‘‘(D) not require submission of plan provisions 
subjecting affected units, within the meaning of sec-
tion 126(d)(1), to requirements with an effective 
date prior to January 1, 2012. 
‘‘(2) In making the determination under clause (ii) 
of subparagraph (B) of paragraph (1), the Administrator 
will use the best available peer- reviewed models and meth-
odology that consider the proximity of the source or 
sources to the other State or States and incorporate other 
source characteristics. 
‘‘(3) Nothing in paragraph (1) shall be interpreted 
to require revisions to the provisions of 40 CFR 51.121 
and 51.122 (2001), as would be amended in the notice 
of proposed rulemaking at 67 Federal Register 8396 (Feb-
ruary 22, 2002)’’. 
‘‘(r) TRANSITIONAL AREAS.—
‘‘(1) MAINTENANCE.—(A) By December 31, 
2010, each area designated as transitional pursuant 
to section 107(d)(1) shall submit an updated emis-
sion inventory and an analysis of whether growth in 
emissions, including growth in vehicle miles traveled,
231
will interfere with attainment by December 31, 
2015. 
‘‘(B) No later than December 31, 2011, the Ad-
ministrator shall review each transitional area’s 
maintenance analysis, and, if the Administrator de-
termines that growth in emissions will interfere with 
attainment by December 31, 2015, the Adminis-
trator shall consult with the State and determine 
what action, if any, is necessary to assure that at-
tainment will be achieved by 2015. 
‘‘(2) PREVENTION OF SIGNIFICANT DETERIORA-
TION.—Each area designated as transitional pursu-
ant to section 107(d)(1) shall be treated as an at-
tainment or unclassifiable area for purposes of the 
prevention of significant deterioration provisions of 
part C of this title. 
‘‘(3) CONSEQUENCES OF FAILURE TO ATTAIN 
BY 2015.—No later than June 30, 2016, the Admin-
istrator shall determine whether each area des-
ignated as transitional for the 8-hour ozone stand-
ard or for the PM 2.5 standard has attained that 
standard. If the Administrator determines that a 
transitional area has not attained the standard, the 
area shall be redesignated as nonattainment within 
1 year of the determination and the State shall be
232
required to submit a State implementation plan revi-
sion satisfying the provisions of section 172 within 
3 years of redesignation as nonattainment.’’. 
(4) By adding to section 111(b)(1) a new sub-
paragraph (C) to read as follows: 
‘‘(C) No standards of performance promul-
gated under this section shall apply to units 
subject to regulations promulgated pursuant to 
section 481.’’. 
(5) By amending section 112 as follows: 
(A) Paragraph (1) of subsection (c) is 
amended to read as follows: 
‘‘(1) IN GENERAL.—Not later than 12 months 
after November 15, 1990, the Administrator shall 
publish, and shall from time to time, but not less 
often than every 8 years, revise, if appropriate, in 
response to public comment or new information, a 
list of all categories and subcategories of major 
sources and area sources (listed under paragraph 
(3)) of the air pollutants listed pursuant to sub-
section (b). Electric utility steam generating units 
not subject to section 3005 of the Solid Waste Dis-
posal Act shall not be included in any category or 
subcategory listed under this subsection. The Ad-
ministrator shall have the authority to regulate the
233
emission of hazardous air pollutants listed under 
section 112(b), other than mercury compounds, by 
electric utility steam generating units in accordance 
with the regime set forth in section 112(f)(2) 
through (4). Any such regulations shall be promul-
gated within, and shall not take effect before, the 
date 8 years after the commencement date of the 
mercury allowance requirement of section 472. To 
the extent practicable, the categories and subcat-
egories listed under this subsection shall be con-
sistent with the list of source categories established 
pursuant to section 111 and part C. Nothing in the 
preceding sentence limits the Administrator’s au-
thority to establish subcategories under this section, 
as appropriate.’’. 
(B) Subparagraph (A) of subsection (n)(1) 
is amended to read as follows: 
‘‘(A) The Administrator shall perform a 
study of the hazards to public health reasonably 
anticipated to occur as a result of emissions by 
electric utility steam generating units of pollut-
ants listed under subsection (b) after imposition 
of the requirements of this Act. The Adminis-
trator shall report the results of this study to
234
the Congress within 3 years after November 15, 
1990.’’. 
(6) Section 126 is amended as follows: 
(A) By replacing ‘‘section 110(a)(2)(D)(ii) 
or this section’’ in subsection (b) with ‘‘section 
110(a)(2)(D)(i)’’. 
(B) By replacing ‘‘this section and the pro-
hibition of section 110(a)(2)(D)(ii)’’ in sub-
section (e)(1) with ‘‘the prohibition of section 
110(a)(2)(D)(i)’’. 
(C) In the flush language at end of sub-
section 
(c) 
by 
striking 
‘‘section 
110(a)(2)(D)(ii)’’ 
and 
inserting 
‘‘section 
110(a)(2)(D)(i)’’ and deleting the last sentence. 
(D) By amending subsection (d) to read as 
follows: 
‘‘(d)(1) For purposes of this subsection, the term ‘af-
fected unit’ means any unit that is subject to emission 
limitations under subpart 2 of part B, subpart 2 of part 
C, or part D. 
‘‘(2) To the extent that any petition submitted under 
subsection (b) after the date of enactment of the Clear 
Skies Act of 2003 seeks a finding for any affected unit, 
then, notwithstanding any provision in subsections (a) 
through (c) to the contrary—
235
‘‘(A) in determining whether to make a finding 
under subsection (b) for any affected unit, the Ad-
ministrator shall consider, among other relevant fac-
tors, emissions reductions required to occur by the 
attainment date or dates of any relevant nonattain-
ment areas in the petitioning State or political sub-
division; 
‘‘(B) the Administrator may not determine that 
affected units emit, or would emit, any air pollutant 
in 
violation 
of 
the 
prohibition 
of 
section 
110(a)(2)(D)(i) unless that Administrator deter-
mines that—
‘‘(i) such emissions may be reduced at 
least as cost-effectively as emissions from each 
other principal category of sources of sulfur di-
oxide or nitrogen oxides, including industrial 
boilers, on-road mobile sources, and off-road 
mobile sources, and any other category of 
sources that the Administrator may identify; 
and 
‘‘(ii) reductions in such emissions will im-
prove air quality in the petitioning State’s non-
attainment area or areas at least as cost-effec-
tively as reductions in emissions from each 
other principal category of sources of sulfur di-
236
oxide or nitrogen oxides to the maximum extent 
that a methodology is reasonably available to 
make such a determination. 
In making the determination under clause (ii), the 
Administrator shall use the best available peer-re-
viewed models and methodology that consider the 
proximity of the source or sources to the petitioning 
State or political subdivision and incorporate other 
sources characteristics. 
‘‘(C) The Administrator shall develop an appro-
priate peer reviewed methodology for making deter-
minations under subparagraph (B) by December 31, 
2006. 
‘‘(D) The Administrator shall not make any 
findings with respect to an affected unit under this 
section prior to January 1, 2009. For any petition 
submitted prior to January 1, 2007, the Adminis-
trator shall make a finding or deny the petition by 
the January 31, 2009. 
‘‘(E) The Administrator, by rulemaking, shall 
extend the compliance and implementation deadlines 
in subsection (c) to the extent necessary to assure 
that no affected unit shall be subject to any such 
deadline prior to January 1, 2012.’’.
237
(b) TITLE III.—Section 307(d)(1)(G) of title III of 
the Clean Air Act is amended to read as follows: 
‘‘(G) the promulgation or revision of any 
regulation under title IV,’’. 
(c) NOISE POLLUTION.—Title IV of the Clean Air 
Act (relating to noise pollution) (42 U.S.C. 7641 et seq.) 
is redesignated as title VII and amended by renumbering 
sections 401 through 403 as sections 701 through 703, 
respectively. 
(d) SECTION 406.—Title IV of the Clean Air Act 
Amendments of 1990 (relating to acid deposition control) 
is amended by repealing section 406 (industrial SO2 emis-
sions). 
(e) MONITORING.—Section 821(a) of title VIII of the 
Clean Air Act Amendments of 1990 (miscellaneous provi-
sions) is amended by modifying section 821(a) to read as 
follows: 
‘‘(a) MONITORING.—The Administrator of the Envi-
ronmental Protection Agency shall promulgate regulations 
within 18 months after November 15, 1990, to require 
that all affected sources subject to subpart 1 of part B 
of title IV of the Clean Air Act as of December 31, 2009, 
shall also monitor carbon dioxide emissions according to 
the same timetable as in section 405(b). The regulations 
shall require that such data be reported to the Adminis-
238
trator. The provisions of section 405(e) of title IV of the 
Clean Air Act shall apply for purposes of this section in 
the same manner and to the same extent as such provision 
applies to the monitoring and data referred to in section 
405. The Administrator shall implement this subsection 
under 40 CFR part 75 (2002), amended as appropriate 
by the Administrator.’’.
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