To amend the Clean Air Act to reduce sulfur dioxide, nitrogen oxide, and mercury emissions, and for other purposes.

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Acid Rain and 
Mercury Control Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Reduction of sulfur dioxide and nitrogen oxide emissions from 
                            powerplants.
Sec. 4. Mercury emission reductions.
Sec. 5. Effect on other law.
Sec. 6. Protecting sensitive regional ecosystems.
Sec. 7. Authorization of appropriations.
Sec. 8. Modernization.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that--
            (1) reductions of atmospheric sulfur dioxide and nitrogen 
        oxide from utility plants, in addition to the reductions 
        required under the Clean Air Act (42 U.S.C. 7401 et seq.), are 
        needed to reduce acid deposition and its serious adverse 
        effects on public health, natural resources, building 
        structures, sensitive ecosystems, and visibility;
            (2) sulfur dioxide and nitrogen oxide contribute to the 
        development of fine particulates, suspected of causing human 
        mortality and morbidity to a significant extent;
            (3) regional nitrogen oxide reductions of 75 percent in the 
        Eastern United States, in addition to the reductions required 
        under the Clean Air Act, may be necessary to protect sensitive 
        watersheds from the effects of nitrogen deposition;
            (4) since the Clean Air Act Amendments of 1990 were 
        enacted, some acidic lakes in the Adirondacks in the State of 
        New York have started to slowly show chemical recovery from 
        acid rain, demonstrating that sulfur dioxide and nitrogen oxide 
        regulations can be implemented in a cost-effective manner, but 
        the recovery is progressing at a slower rate than originally 
        intended;
            (5) nitrogen oxide is highly mobile and can lead to ozone 
        formation hundreds of miles from the emitting source;
            (6) on March 10, 2005, the Environmental Protection Agency 
        (EPA) issued the Clean Air Interstate Rule (CAIR) to require 
        additional reductions in sulfur dioxide and nitrogen oxide in 
        28 Eastern States and the District of Columbia;
            (7) these reductions represent approximately a 70 percent 
        reduction in sulfur dioxide and a 60 percent reduction in 
        nitrogen oxide in the affected States;
            (8) on July 11, 2008, the United States Court of Appeals 
        for the District of Columbia Circuit vacated CAIR and on 
        December 23, 2008, the same court remanded the rule back to the 
        EPA without vacature;
            (9) fossil fuel-fired electric generating units emit 
        approximately \1/3\ of the total mercury emissions in the 
        United States;
            (10) mercury is considered a neurotoxin which can 
        bioaccumulate as it moves its way up the food chain and is 
        especially harmful to young children and developing fetuses;
            (11) according to the EPA, there were 3,080 fish advisories 
        for mercury in 2006; there are over 90 fish advisories for 
        mercury in New York alone, with blanket warning for the 
        Adirondack and Catskill Mountains;
            (12) on March 15, 2005, EPA issued the Clean Air Mercury 
        Rule (CAMR), which for the first time sought to regulate 
        mercury emissions from power plants, but used a less 
        restrictive cap-and-trade approach for this very harmful 
        substance and would take a full decade to implement;
            (13) on February 8, 2008, the United States Court of 
        Appeals for the District of Columbia Circuit vacated CAMR; and
            (14) on February 23, 2009, the Supreme Court denied a 
        request to reconsider the decision.
    (b) Purposes.--The purposes of this Act are--
            (1) to recognize the current scientific understanding that 
        emissions of sulfur dioxide and nitrogen oxide, and the acid 
        deposition resulting from emissions of sulfur dioxide and 
        nitrogen oxide, present a substantial human health and 
        environmental risk;
            (2) to require reductions in sulfur dioxide and nitrogen 
        oxide emissions;
            (3) to support the efforts of existing acid rain and 
        mercury monitoring programs located throughout the country;
            (4) to reduce utility emissions of nitrogen oxide by 75 
        percent from 1997 levels;
            (5) to reduce utility emissions of sulfur dioxide by 75 
        percent after the implementation of phase II sulfur dioxide 
        requirements under section 405 of the Clean Air Act (42 U.S.C. 
        7651d); and
            (6) to adopt a strict standard for mercury emissions by 
        power plants of 0.6 pounds per trillion Btu without allowing 
        for a cap-and-trade system.

SEC. 3. REDUCTION OF SULFUR DIOXIDE AND NITROGEN OXIDE 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:

``SEC. 132. REDUCTION OF SULFUR DIOXIDE AND NITROGEN OXIDE EMISSIONS 
              FROM POWERPLANTS.

    ``(a) Emission Reduction Objectives.--The emission reduction 
objectives of this section are to reduce, not later than January 1, 
2012--
            ``(1) aggregate sulfur dioxide emissions from powerplants 
        by 75 percent from the levels allowed under full implementation 
        of the Phase II sulfur dioxide 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 specified in subsection (a).
                    ``(B) Elements.--The regulations promulgated 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 
                        reductions achieved before the date of 
                        enactment of this section and other relevant 
                        factors;
                            ``(ii) may include market-oriented 
                        mechanisms (such as emissions trading based on 
                        generation performance standards, auctions, or 
                        other allocation methods);
                            ``(iii) shall prevent localized adverse 
                        effects on public health and the environment 
                        and ensure that significant emission reductions 
                        are achieved in both the Eastern and Western 
                        regions of the United States; and
                            ``(iv) shall include, consistent with 
                        achieving the objectives set forth in 
                        subsection (a), incentives for renewable 
                        energy.
            ``(2) Interagency coordination to minimize costs and 
        maximize gains.--To minimize the economic costs and maximize 
        the economic gains of achieving the emission reduction 
        objectives specified in subsection (a), the Administrator shall 
        coordinate with other departments and agencies of Federal and 
        State government to increase energy efficiency, to increase the 
        use of renewable energy, and to implement cost saving advanced 
        demand and supply side policies, such as those described in the 
        report 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 Administrator determines that the emission levels 
necessary to achieve the emission reduction objectives specified in 
subsection (a) are not reasonably anticipated to protect public health 
or welfare.
    ``(d) Modernization of Outdated Powerplants.--
            ``(1) In general.--On the later of the date that is 30 
        years after a powerplant commenced operation 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 performance 
                standards promulgated under section 111; and
                    ``(B) the requirements under parts C and D that are 
                applicable to modified sources.
            ``(2) Additional requirements.--The requirements of this 
        subsection shall be in addition to 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 `powerplant' means an 
electric generation facility with a nameplate capacity of 25 megawatts 
or more that uses a combustion device to generate electricity for 
sale.''.

SEC. 4. MERCURY EMISSION REDUCTIONS.

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

                    ``TITLE VII--MERCURY REDUCTIONS

``Sec. 701. Definitions.
``Sec. 702. Mercury reduction program.
``Sec. 703. Prohibitions.

``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 `cogeneration 
        facility' means a facility that--
                    ``(A) cogenerates--
                            ``(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 electrical 
                        output of the facility.

``SEC. 702. MERCURY REDUCTION PROGRAM.

    ``(a) New Unit Requirement.--Any affected unit that commences 
operation after December 31, 2010, shall be considered a new unit for 
the purposes of this section and shall not exceed the emission limit of 
0.6 pounds mercury per trillion Btu (0.6 lb Hg/TBtu) upon commencement 
of operation.
    ``(b) Existing Unit Requirement.--Any affected unit that commences 
operation on or before December 31, 2010, shall not exceed the emission 
limit of 0.6 pounds mercury per trillion Btu by January 1, 2013.
    ``(c) Monitoring System.--Not later than January 1, 2011, the 
Administrator shall promulgate regulations requiring operation, 
reporting and certification of continuous emissions monitoring systems 
(CEMS) to accurately measure the quantity of mercury that is emitted 
from each affected unit.
    ``(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 mercury described in subsections (b) and (c).
    ``(e) Prevention of Mercury Re-Release.--Not later than January 1, 
2011, the Administrator shall promulgate 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. 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 implementing this 
                title);
                    ``(B) to fail to submit by the required date any 
                emission allowances, or pay any penalty, for which the 
                owner or operator is liable;
                    ``(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 except in accordance with 
        regulations promulgated by the Administrator.''.

SEC. 5. EFFECT ON OTHER LAW.

    Nothing in this Act--
            (1) affects the ability of a State to take State actions to 
        further limit sulfur dioxide, nitrogen oxide, or mercury; and
            (2) except as expressly provided in this Act--
                    (A) modifies or otherwise affects any requirement 
                of this Act in effect on the day before the date of 
                enactment of this Act; or
                    (B) relieves any person of the responsibility to 
                comply with this Act.

SEC. 6. PROTECTING SENSITIVE REGIONAL ECOSYSTEMS.

    (a) Report.--
            (1) In general.--Not later than December 31, 2012, the 
        Administrator shall submit to Congress a report identifying 
        objectives for scientifically credible environmental 
        indicators, as determined by the Administrator of the 
        Environmental Protection Agency, that are sufficient to protect 
        and restore sensitive ecosystems of the Adirondack Mountains, 
        mid-Appalachian Mountains, Catskill Mountains, Rocky Mountains, 
        and Southern Blue Ridge Mountains and water bodies of the Great 
        Lakes, Lake Champlain, Long Island Sound, the Chesapeake Bay 
        and other sensitive ecosystems, as determined by the 
        Administrator.
            (2) Updated report.--Not later than December 31, 2021, the 
        Administrator shall submit to Congress a report updating the 
        report under paragraph (1) and assessing the status and trends 
        of various environmental objectives and indicators for the 
        sensitive regional ecosystems referred to in paragraph (1).
            (3) Reports under the national acid precipitation 
        assessment program.--The reports under this subsection shall be 
        subject to the requirements 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 December 31, 2019, the 
        Administrator shall determine whether emission 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 determines under 
        paragraph (1) that emission reductions under title VII of the 
        Clean Air Act are not sufficient to ensure achievement of the 
        objectives identified in subsection (a)(1), the Administrator 
        shall promulgate, not later than 2 years after making the 
        finding, such regulations, including modification of sulfur 
        dioxide and nitrogen oxide allowance allocations or any such 
        measure, as the Administrator determines are necessary to 
        protect the sensitive ecosystems described in subsection 
        (a)(1).

SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

    In addition to amounts made available under any other law, there 
are authorized to be appropriated for each of fiscal years 2010 through 
2020--
            (1) for operational support of the National Atmospheric 
        Deposition Program National Trends Network--
                    (A) $2,000,000 to the United States Geological 
                Survey;
                    (B) $600,000 to the Environmental Protection 
                Agency;
                    (C) $600,000 to the National Park Service; and
                    (D) $400,000 to the Forest Service;
            (2) for operational support of the National Atmospheric 
        Deposition Program Mercury Deposition Network--
                    (A) $400,000 to the Environmental Protection 
                Agency;
                    (B) $400,000 to the United States Geological 
                Survey;
                    (C) $100,000 to the National Oceanic and 
                Atmospheric Administration; and
                    (D) $100,000 to the National Park Service;
            (3) for the National Atmospheric Deposition Program 
        Atmospheric Integrated Research Monitoring Network $1,500,000 
        to the National Oceanic and Atmospheric Administration;
            (4) for the Clean Air Status and Trends Network $5,000,000 
        to the Environmental Protection Agency; and
            (5) for the Temporally Integrated Monitoring of Ecosystems 
        and Long-Term Monitoring Program $2,500,000 to the 
        Environmental Protection Agency.

SEC. 8. MODERNIZATION.

    (a) Authorization of Appropriations.--In addition to amounts made 
available under any other law, there are authorized to be 
appropriated--
            (1) for equipment and site modernization of the National 
        Atmospheric Deposition Program National Trends Network 
        $6,000,000 to the Environmental Protection Agency;
            (2) for equipment and site modernization and network 
        expansion of the National Atmospheric Deposition Program 
        Mercury Deposition Network $2,000,000 to the Environmental 
        Protection Agency;
            (3) for equipment and site modernization and network 
        expansion of the National Atmospheric Deposition Program 
        Atmospheric Integrated Research Monitoring Network $1,000,000 
        to the National Oceanic and Atmospheric Administration; and
            (4) for equipment and site modernization and network 
        expansion of the Clean Air Status and Trends Network $4,600,000 
        to the Environmental Protection Agency.
    (b) Availability of Amounts.--Each of the amounts appropriated 
under subsection (a) shall remain available until expended.

Summary: Acid Rain and Mercury Control Act - Amends the Clean Air Act to require the Administrator of the Environmental Protection Agency (EPA) to promulgate regulations to reduce specified amounts of aggregate sulfur dioxide emissions and nitrogen oxide emissions from power plants by January 1, 2012. Authorizes the regulations to include market-oriented mechanisms.

Requires the Administrator to coordinate with federal and state governments to increase energy efficiency, to increase the use of renewable energy, and to implement cost saving advanced demand and supply side policies.

Requires a power plant, by the later of the date that is 30 years after it commenced operation or the date that is five years after this Act's enactment, to comply with the specified new source performance standards and specified requirements applicable to modified sources under the Clean Air Act.

Considers affected units (coal-fired electric generating facilities that have a nameplate capacity greater than 25 megawatts and that generate electricity for sale) that commence operation after December 31, 2010, to be new units. Prohibits such units from exceeding the mercury emission limit of 0.6 pounds mercury per trillion Btu upon commencement of operation. Prohibits affected units that commence operation on or before December 31, 2010, from exceeding such limit by January 1, 2013.

Sets forth penalties for excess emissions. Requires the Administrator to ensure that mercury captured or recovered by emission controls installed at affected units is not re-released into the environment.

Prohibits owners or operators of electricity generating facilities from: (1) operating such facilities in noncompliance with the requirements of this Act; (2) failing to submit allowances or penalties or to provide and comply with any plan to offset excess emissions; and (3) emitting mercury in excess of the emission limitations.

Prohibits any person from holding, using, or transferring emission allowances allocated under such Act that are not in accordance with regulations promulgated by the Administrator.

Declares that nothing in this Act affects the ability of states to take actions to further limit sulfur dioxide, nitrogen oxide, or mercury.

Directs the Administrator to promulgate regulations to protect specified sensitive ecosystems if the emissions reductions under title VII of the Clean Air Act are not sufficient to ensure the protection and restoration of such ecosystems.