SENSE Act

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Satisfying Energy Needs and Saving 
the Environment Act'' or the ``SENSE Act''.

SEC. 2. STANDARDS FOR COAL REFUSE POWER PLANTS.

    (a) Definitions.--In this Act:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (2) Boiler operating day.--The term ``boiler operating 
        day'' has the meaning given such term in section 63.10042 of 
        title 40, Code of Federal Regulations, or any successor 
        regulation.
            (3) Coal refuse.--The term ``coal refuse'' means any 
        byproduct of coal mining, physical coal cleaning, or coal 
        preparation operation that contains coal, matrix material, 
        clay, and other organic and inorganic material.
            (4) Coal refuse electric utility steam generating unit.--
        The term ``coal refuse electric utility steam generating unit'' 
        means an electric utility steam generating unit that--
                    (A) is in operation as of the date of enactment of 
                this Act;
                    (B) uses fluidized bed combustion technology to 
                convert coal refuse into energy; and
                    (C) uses coal refuse as at least 75 percent of the 
                annual fuel consumed, by heat input, of the unit.
            (5) Coal refuse-fired facility.--The term ``coal refuse-
        fired facility'' means all coal refuse electric utility steam 
        generating units that are--
                    (A) located on one or more contiguous or adjacent 
                properties;
                    (B) specified within the same Major Group (2-digit 
                code), as described in the Standard Industrial 
                Classification Manual (1987); and
                    (C) under common control of the same person (or 
                persons under common control).
            (6) Cross-state air pollution rule.--The terms ``Cross-
        State Air Pollution Rule'' and ``CSAPR'' mean the regulatory 
        program promulgated by the Administrator to address the 
        interstate transport of air pollution in parts 51, 52, and 97 
        of title 40, Code of Federal Regulations, including any 
        subsequent or successor regulation.
            (7) Electric utility steam generating unit.--The term 
        ``electric utility steam generating unit'' means either or 
        both--
                    (A) an electric utility steam generating unit, as 
                such term is defined in section 63.10042 of title 40, 
                Code of Federal Regulations, or any successor 
                regulation; or
                    (B) an electricity generating unit or electric 
                generating unit, as such terms are used in CSAPR.
            (8) Phase i.--The term ``Phase I'' means, with respect to 
        CSAPR, the initial compliance period under CSAPR, identified 
        for the 2015 and 2016 annual compliance periods.
    (b) Application of CSAPR to Certain Coal Refuse Electric Utility 
Steam Generating Units.--
            (1) Coal refuse electric utility steam generating units 
        combusting bituminous coal refuse.--
                    (A) Applicability.--This paragraph applies with 
                respect to any coal refuse electric utility steam 
                generating unit that--
                            (i) combusts coal refuse derived from the 
                        mining and processing of bituminous coal; and
                            (ii) is subject to sulfur dioxide allowance 
                        surrender provisions pursuant to CSAPR.
                    (B) Continued applicability of phase i allowance 
                allocations.--In carrying out CSAPR, the Administrator 
                shall provide that, for any compliance period, the 
                allocation (whether through a Federal implementation 
                plan or State implementation plan) of sulfur dioxide 
                allowances for a coal refuse electric utility steam 
                generating unit described in subparagraph (A) is 
                equivalent to the allocation of the unit-specific 
                sulfur dioxide allowance allocation identified for such 
                unit for Phase I, as referenced in the notice entitled 
                ``Availability of Data on Allocations of Cross-State 
                Air Pollution Rule Allowances to Existing Electricity 
                Generating Units'' (79 Fed. Reg. 71674 (December 3, 
                2014)).
                    (C) Rules for allowance allocations.--For any 
                compliance period under CSAPR that commences on or 
                after January 1, 2017, any sulfur dioxide allowance 
                allocation provided by the Administrator to a coal 
                refuse electric utility steam generating unit described 
                in subparagraph (A)--
                            (i) shall not be transferable for use by 
                        any other source not located at the same coal 
                        refuse-fired facility as the relevant coal 
                        refuse electric utility steam generating unit;
                            (ii) may be transferable for use by another 
                        source located at the same coal refuse-fired 
                        facility as the relevant coal refuse electric 
                        utility steam generating unit;
                            (iii) may be banked for application to 
                        compliance obligations in future compliance 
                        periods under CSAPR; and
                            (iv) shall be surrendered upon the 
                        permanent cessation of operation of such coal 
                        refuse electric utility steam generating unit.
            (2) Other sources.--
                    (A) No increase in overall state budget of sulfur 
                dioxide allowance allocations.--For purposes of 
                paragraph (1), the Administrator may not, for any 
                compliance period under CSAPR, increase the total 
                budget of sulfur dioxide allowance allocations for a 
                State in which a unit described in paragraph (1)(A) is 
                located.
                    (B) Compliance periods 2017 through 2020.--For any 
                compliance period under CSAPR that commences on or 
                after January 1, 2017, but before December 31, 2020, 
                the Administrator shall carry out subparagraph (A) by 
                proportionally reducing, as necessary, the unit-
                specific sulfur dioxide allowance allocations from each 
                source that--
                            (i) is located in a State in which a unit 
                        described in paragraph (1)(A) is located;
                            (ii) permanently ceases operation, or 
                        converts its primary fuel source from coal to 
                        natural gas, prior to the relevant compliance 
                        period; and
                            (iii) otherwise receives an allocation of 
                        sulfur dioxide allowances under CSAPR for such 
                        period.
    (c) Emission Limitations To Address Hydrogen Chloride and Sulfur 
Dioxide as Hazardous Air Pollutants.--
            (1) Applicability.--For purposes of regulating emissions of 
        hydrogen chloride or sulfur dioxide from a coal refuse electric 
        utility steam generating unit under section 112 of the Clean 
        Air Act (42 U.S.C. 7412), the Administrator--
                    (A) shall authorize the operator of such unit to 
                elect that such unit comply with either--
                            (i) an emissions standard for emissions of 
                        hydrogen chloride that meets the requirements 
                        of paragraph (2); or
                            (ii) an emission standard for emissions of 
                        sulfur dioxide that meets the requirements of 
                        paragraph (2); and
                    (B) may not require that such unit comply with both 
                an emission standard for emissions of hydrogen chloride 
                and an emission standard for emissions of sulfur 
                dioxide.
            (2) Rules for emission limitations.--
                    (A) In general.--The Administrator shall require an 
                operator of a coal refuse electric utility steam 
                generating unit to comply, at the election of the 
                operator, with no more than one of the following 
                emission standards:
                            (i) An emission standard for emissions of 
                        hydrogen chloride from such unit that is no 
                        more stringent than an emission rate of 0.002 
                        pounds per million British thermal units of 
                        heat input.
                            (ii) An emission standard for emissions of 
                        hydrogen chloride from such unit that is no 
                        more stringent than an emission rate of 0.02 
                        pounds per megawatt-hour.
                            (iii) An emission standard for emissions of 
                        sulfur dioxide from such unit that is no more 
                        stringent than an emission rate of 0.20 pounds 
                        per million British thermal units of heat 
                        input.
                            (iv) An emission standard for emissions of 
                        sulfur dioxide from such unit that is no more 
                        stringent than an emission rate of 1.5 pounds 
                        per megawatt-hour.
                            (v) An emission standard for emissions of 
                        sulfur dioxide from such unit that is no more 
                        stringent than capture and control of 93 
                        percent of sulfur dioxide across the generating 
                        unit or group of generating units, as 
                        determined by comparing--
                                    (I) the expected sulfur dioxide 
                                generated from combustion of fuels 
                                emissions calculated based upon as-
                                fired fuel samples; to
                                    (II) the actual sulfur dioxide 
                                emissions as measured by a sulfur 
                                dioxide continuous emission monitoring 
                                system.
                    (B) Measurement.--An emission standard described in 
                subparagraph (A) shall be measured as a 30 boiler 
                operating day rolling average per coal refuse electric 
                utility steam generating unit or group of coal refuse 
                electric utility steam generating units located at a 
                single coal refuse-fired facility.

            Passed the House of Representatives March 15, 2016.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.

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